MELBOURNE – Australian miner Adelong Gold Ltd (ADG.AX) said on Monday it agreed to sell its remaining 49% interest in the Challenger gold project in New South Wales to joint venture partner Great Divide Mining Ltd (GDM.AX), streamlining its portfolio to focus on core assets.
Under the binding agreement, Adelong will receive 10 million GDM shares, worth about A$3.1 million ($2.0 million) based on GDM’s last close. The deal also grants Adelong a 1% net smelter return royalty on future gold production from the project, capped at 125,000 ounces.
The royalty has a notional value of roughly A$7.9 million at current gold prices, the company said.
The transaction, expected to complete in late January 2026 pending shareholder and regulatory approvals, resolves all outstanding matters between the two companies. It terminates the Challenger joint venture, relieving Adelong of future funding obligations for the project.
“This improves our balance sheet, removes future funding risk, and allows us to direct capital to the Lauriston and Apollo gold projects,” said Adelong Managing Director Ian Holland.
The deal strengthens Adelong’s exposure to the Challenger project’s upside through the royalty and its new shareholding in GDM, while enabling a concentrated effort on its high-grade gold-antimony projects in Victoria, acquired earlier this year.
Half of the consideration shares will be placed in voluntary escrow for six months and the other half for 12 months. Adelong must also first offer any shares it plans to sell within 18 months of completion to GDM.
As part of the settlement, Adelong will pay A$27,288 to Challenger Mines Pty Ltd for historical tax obligations but retains A$455,000 from a prior property sale.
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