QMines Ltd is set to acquire 100% of Mount Mackenzie Mines Pty Ltd, which holds the Mount Mackenzie Gold Project in Queensland for around $2.485 million, including a combination of A$1 million in cash and the issue of 33 million QMines shares at A$0.045 per share, equating to A$1.485 million in equity.
Completion of the binding agreement remains subject to due diligence, regulatory and shareholder approvals, and debt forgiveness. Once finalised, the acquisition will further expand QMines’ footprint in Queensland, strengthening its portfolio of gold assets in the state.
“We’re delighted to acquire Mount Mackenzie, a project that aligns perfectly with our strategy of building a pipeline of high-quality gold and copper assets in Queensland. With two advanced projects in the portfolio, we’re well-positioned to drive further growth in one of Australia’s most prospective mining jurisdictions,” QMines managing director Andrew Sparke.
QMines consolidating its footprint
The Mount Mackenzie transaction aligns with Resources & Energy Group Limited’s decision to sharpen its strategic focus on its East Menzies Gold Project in Western Australia. By divesting the Mount Mackenzie Project, REZ aims to unlock value for shareholders and reallocate capital towards exploration and development at its core asset.
REZ confirmed that it will continue to retain exposure to the gold sector through its remaining projects, while the divestment provides QMines with an opportunity to consolidate its presence in a well-established gold province.
For QMines, the acquisition complements its flagship Mount Chalmers Project and strengthens its position as a leading gold and copper explorer in Queensland.
The addition of the Mount Mackenzie Project increases the company’s exposure to advanced-stage gold assets within a proven mineral province and presents a clear opportunity to generate further value through targeted development activities.
QMines completes Mt Chalmers drilling and mobilises rig to Develin Creek
Earlier this month, QML completed its diamond drilling program at the Mount Chalmers copper and gold project in Queensland. Visual inspection of the core has confirmed the quality and consistency of mineralisation, reinforcing the high-grade nature of the ore body and supporting the project's robust resource base.
With drilling at Mount Chalmers now concluded, the diamond rig has mobilised to the nearby Develin Creek project. The upcoming program is designed to build on recent exploration success and expand the resource potential of what is emerging as a highly prospective asset.
Previous drilling at Develin Creek delivered standout results, including an intersection of 114 metres at 1.64% copper, 0.86% zinc, 0.3 grams per tonne (g/t) gold and 13 g/t silver from 11 metres, with the hole ending in mineralisation¹.
Diamond core from the recent drilling at the Company’s Mt Chalmers project.
This follows a recent mineral resource upgrade at Develin Creek, which now stands at 4.2 million tonnes at 1.07% copper, 1.16% zinc, 0.15 g/t gold and 6.0 g/t silver.
Notably, the upgrade included a 42% increase in Indicated resources, which now comprise 70% of the total estimate, enhancing confidence in the project's development potential and future mine planning.
“The completion of diamond drilling at Mt Chalmers is another positive step forward, clearly demonstrating the exceptional quality of the Mt Chalmers deposit. With the rig now moving to Develin Creek, and another expected to arrive shortly, we are excited by the opportunity to replicate recent success and continue our teams strong track-record of delivering substantial value for shareholders," Sparke said.
Develin Creek's enhanced resource and high-grade drill results position it as an increasingly important catalyst within QMines’ growth strategy.”
Location and Infrastructure at the Mt Chalmers and Develin Creek projects.