Adelong Gold Executes Advancement Deal for Adelong Gold Project

THE BOURSE WHISPERER: Adelong Gold (ASX: ADG) has executed a binding agreement with Great Divide Mining (ASX: GDM) over the company’s Adelong gold project in New South Wales.

Adelong Gold explained the agreement would result in advancement of the Adelong gold project with GDM assuming responsibility for progressing the project towards production, aiming for first gold production within 12 months.

Should this milestone not be met, Adelong Gold retains the right to revert to 100 per cent ownership of the project.

Key terms of the agreement include:

• Investment Structure – GDM to invest $300,000 for an initial 15 per cent stake in Challenger Gold Mines (CGM) following due diligence.

• Operational Control – GDM will act as the project operator, managing site activities and overseeing plant refurbishment.

• Milestone-Based Ownership – Upon achieving first gold pour, GDM’s interest will increase to 51 per cent, with Adelong Gold maintaining a 49 per cent strategic interest.

• Free Carry for Adelong Gold – No funding obligations for Adelong Gold until gold production commences.

• Exploration Commitment – Additional exploration and feasibility studies to expand gold resources within the project area.

“We are pleased to have secured this agreement with GDM, which provides a clear pathway towards production at Adelong,” Adelong Gold managing director Ian Holland said in the company’s ASX announcement.

“The agreement aligns with our strategy to unlock the value of the project while ensuring a pathway to retain control should key milestones not be met.

“We look forward to working closely with GDM to advance the project and deliver value to our shareholders.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE