QMines is adding the Mount Mackenzie gold project to its ground in the Rockhampton region in a $2.485 million deal with Resources & Energy Group.
QMines managing director Andrew Sparke said the project aligned perfectly with the company’s strategy of building a pipeline of high-quality gold and copper assets in Queensland.
“With two advanced projects in the portfolio, we’re well-positioned to drive further growth in one of Australia’s most prospective mining jurisdictions,” he said.
Located 150km north-west of Rockhampton, the Mount Mackenzie tenements encompass four areas which have been subject to a number of successful exploration campaigns targeting shallow depth gold mineralisation, according to Resources & Energy Group.
Drilling has established a JORC resource containing 129,000oz gold and 862,000oz silver, but this only takes in a small portion of the granted mining development licence.
QMines’ flagship Mount Chalmers copper and gold project is located 17km north-east of Rockhampton and it is also advancing the Develin Creek project about 90km north-west of Rockhampton.
Related: Develin Creek delivers boost for QMines growth path
For Resources & Energy Group, the transaction follows a decision to realign its asset portfolio, primarily focusing on expanding exploration and development activities at its East Menzies gold project in Western Australia.
The companies have executed a binding term sheet for the sale, with completion subject to conditions including due diligence, regulatory and shareholder approvals, and debt forgiveness.
The agreement involves a total consideration of $2.485 million, comprising $1 million in cash and 33 million QML shares issued at a deemed price of $0.045 per share.
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