Adelong Gold and Great Divide Mining partnership details

Adelong Gold (ASX:ADG) has signed a binding farm-in agreement with Great Divide Mining (ASX:GDM). This deal allows GDM to acquire up to a 51% stake in the Adelong Gold Project. GDM will invest $300,000 initially for a 15% interest, with the option to increase to 51% by achieving gold production within a year. If this goal is not met, Adelong Gold will regain full ownership.

Adelong Gold and GDM's future plans and goals

Adelong Gold has entered into a strategic agreement with Great Divide Mining to rejuvenate the Adelong Gold Project. The project spans 70 km² and holds historical significance with over 800,000 ounces of past gold production. GDM's initial $300,000 investment grants them a 15% stake in Challenger Gold Mines Pty Ltd, with an option to increase to 51% upon first gold production within 12 months. The project aims to leverage GDM's expertise and resources, including equipment and operational management provided by the Ryan Family. A dual board structure will manage the project, with Adelong Gold retaining a significant stake. The agreement excludes Adelong's Brazilian assets and focuses on restarting gold production in New South Wales, potentially boosting regional economic growth. The partnership will proceed following due diligence and regulatory approvals, with an initial works program planned post-approval.

Insight from Adelong Gold on strategic partnership

This agreement marks a strategic move for both companies to resume gold production in the region, leveraging GDM's operational expertise and infrastructure.