Great Divide Mining Expands Footprint Cost-Effectively in Historic Gold Mining Region

Great Divide Mining Ltd (ASX: GDM) has moved to enhance its current tenement package at the Devils Mountain Project in Queensland.

Through a transaction, the company will extend the strike of Devils Mountain gold mine workings to over 7.5 kilometres.

Great Divide has signed two binding asset sale agreements to purchase exploration permits for minerals (EPM), 26062 and 26135.

The acquisitions, subject to due diligence, deliver a regional consolidation in the Devils Mountain – Kilkivan area, and add significant historical gold and copper mines to its portfolio.

The project lies in the Gympie and Wandilla Provinces of the New England Fold Belt or New England Orogen.

Historic drill intercepts include; 7 metres at 11.45g/t gold.

Consideration

EPM 26062; $157,500 in Great Divide shares at a strike of $0.30, plus additional $157,500 in shares at a strike price of $0.40.

The payment is subject to a JORC Resource of 5,000 gold ounces or equivalent being identified.

EPM 26135; $100,000 in shares at a strike of $0.30, plus additional $100,000 in shares at a strike price of $0.40.

Payment is subject to a JORC Resource being identified.

Enhanced package

Justin Haines, chief executive offer, commented:

“The acquisition of these tenements at our Devils Mountain project represents a substantial potential enhancement to our current tenement package at Devils Mountain.

“The tenements will provide the company access to the extensions to the known Devils Mountain historic gold mining area plus the Kilkivan gold and copper fields including the historic Clara Copper Mines.”

Importantly, exploration works planned for Devils Mountain will be extended to the new acquisitions with little budgetary impact.

Valuation proposition

Great Divide is capped at over $7 million, and held $2.2 million in cash and cash equivalents at the end of March 2024.

For an enterprise value in the $5 million range.

 

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