Great Divide Mining has resolved a dispute with Adelong Gold that halted operations at Challenger Mines, paving the way for Great Divide to acquire the remaining 49 per cent interest in the mine.
Great Divide said it has resolved its dispute with Adelong and has entered into a binding agreement to acquire Challenger.
The two joint venture partners reached a standoff in August over disagreements regarding the budget for the mine.
The two reached an agreement in November to settle the dispute and for Adelong to sell its stake in the mine.
Under the terms of the sale, Adelong will receive 10 million fully-paid Great Divide shares, valued at AU$3.1 million based on Great Divide’s most recent closing price of 31 cents.
Adelong retains a 1 per cent royalty on all gold produced at Challenger, capped at 125,000 ounces and with a notional value of AU$7.9 million.
Adelong Managing Director Ian Holland said the transaction strengthens the company’s balance sheet and allows it to direct capital to the Lauriston and Apollo gold projects.
“Finalising this transaction with Great Divide gives our shareholders clarity and a clean exit from the Challenger joint venture, while still retaining material exposure to any upside through our shareholding in Great Divide and the royalty.”
Once the agreement is completed, Great Divide aims to progress development at Challenger at its own pace, focusing on upgrading processing and production capacity, with a long-term targeted output of 25,000 ounces per annum.
Great Divide CEO Justin Haines said acquiring full ownership enables the mine to move forward more decisively.
“Challenger can now advance on a production-focused footing … sustainable revenues, staged development, lifting production levels, and all the while continue to separate gold using only water and gravity – no chemicals – which has always been a cornerstone of our recommissioning strategy.”
Great Divide will continue optimising the mine and will install upgraded gravity spiral gold separators and commence works for open-cut mining.
“This is about building a long-life, sustainable operation and doing it at a pace that will deliver near-term cash flows,” Haines said.
Great Divide will be seeking shareholder approval for the transaction in mid-to-late January 2026 and expects completion of the sale in late January.
