QMines Ltd (ASX:QML) has completed its acquisition of the Mt Mackenzie Gold and Silver Project from Resources & Energy Group Ltd, adding another high-quality asset to its expanding portfolio of copper and gold projects in Queensland and further strengthening its foothold in the region’s lucrative mining sector.
The project, located near QMines' existing Mt Chalmers and Develin Creek assets, enhances the company’s strategic hub-and-spoke development model. With Mt Mackenzie’s existing JORC resource of 3.4 million tonnes at 1.18 g/t gold and 9 g/t silver, the deal increases QMines’ precious metal exposure, setting the company up for further exploration and growth.
Acquisition details and project potential
The Mt Mackenzie project is an advanced-stage gold and silver project with substantial resource potential, representing 129,000 ounces of gold and 862,000 ounces of silver.
The acquisition enhances QMines’ exposure to precious metals, strengthening its hub-and-spoke development strategy in the region, where the company now controls three advanced copper and gold projects, all within trucking distance of each other.
Mount Chalmers and Develin Creek project locations and infrastructure.
The total acquisition consideration for Mt Mackenzie is valued at $2.485 million, consisting of $1 million in cash and the issuance of 33 million QMines shares at a deemed price of $0.045, subject to a 12-month voluntary escrow.
QMines has already paid $900,000 of the cash consideration, with the remaining funds settled through a convertible note. The outstanding shares are expected to be issued today.
As part of the transaction, Resources & Energy Group retains an interest in Mt Mackenzie through its new shareholding in QMines. The group now holds about 7% of QMines’ issued share capital, making it the third-largest shareholder in the company.
Next steps for QMines
Following the completion of the acquisition, QMines is preparing for its maiden drilling program at Mt Mackenzie. Details of the program are expected to be released shortly, signalling the company’s commitment to advancing the project and unlocking further value.
“We’re delighted to formally welcome the Mt Mackenzie Project into the QMines portfolio,” executive chairman Andrew Sparke said. “This is a quality asset that fits perfectly with our vision to establish a long-life, multi-asset copper and gold operation in Central Queensland.”
Strengthening the Queensland copper-gold strategy
The acquisition of Mt Mackenzie is the latest move in QMines’ strategy to build a robust, diversified portfolio of copper and gold assets in Queensland. With three projects now in its control, QMines is well-positioned to scale production, extend mine life and deliver significant value for shareholders.
The acquisition adds to the company's recent milestones, including the successful advancement of the Develin Creek copper-zinc project and the ramp-up of Mt Chalmers, which is expected to play a key role in the company’s broader development plans.
The company continues working to establish itself as a leading copper-gold developer on the ASX, with a strategic focus on organic growth, resource expansion and the transition to sustainable copper production.