BRISBANE: Pacgold Limited announced Tuesday it has executed an agreement to acquire 100% of the White Dam Gold Operation in South Australia from GBM Resources Ltd., a move the company says provides a clear pathway to near-term gold production and cash flow.
The acquisition includes significant existing infrastructure, such as open pit mines, a heap leach pad, a personnel camp, and an operational gold extraction plant. The project is located approximately 80 kilometers southwest of the established mining hub of Broken Hill.
“We are delighted to have secured this transformational acquisition for Pacgold,” said Managing Director Matthew Boyes. “It provides a clear pathway to near-term gold production and cash flow… with minimal up front capital required to recommence gold production.”
The White Dam operation, which ran from 2010 to 2018, historically produced approximately 180,000 ounces of gold. Pacgold’s initial focus will be on generating short-term cash flow by retreating and re-crushing existing material on the heap leach pad. The project also holds a JORC 2012 Mineral Resource Estimate of 4.6 million tonnes at 0.7 grams per tonne gold for approximately 102,000 ounces.
The total consideration for the acquisition includes an upfront cash payment of $1.2 million AUD, the issue of 15 million Pacgold shares, and a contingent payment of $2.2 million AUD upon achieving commercial production of at least 5,000 ounces of gold at the project.
To fund the acquisition and restart of the project, Pacgold has engaged Bell Potter and Taylor Collison as Joint Lead Managers to undertake a capital raise. The company has requested a voluntary suspension from trading on the ASX to conduct the placement and expects to be reinstated to trading on or around Wednesday, Oct. 8, 2025.
Pacgold plans a three-phase approach to restart operations, beginning with the extraction of remaining gold from the heap within two months of completing the acquisition.
The company said the acquisition complements its existing portfolio, which includes the Alice River Gold Project and the St George Gold-Antimony Project in northeast Queensland.
Completion of the acquisition is expected in December 2025, subject to standard conditions precedent.