QMines Accelerates Growth with Mount Mackenzie Gold-Silver Acquisition

Strategic Acquisition Bolsters QMines’ Portfolio

QMines Limited (ASX – QML) is poised to finalize the acquisition of the Mount Mackenzie Gold and Silver Project, a move that significantly enhances its exposure to precious metals. Located in central Queensland, this high-grade project adds approximately 129,000 ounces of gold and 862,000 ounces of silver to QMines’ resource base, marking a substantial step in the company’s growth trajectory.

The acquisition consideration totals $2.485 million, comprising $1 million in cash and the issuance of 33 million shares subject to a 12-month escrow. This transaction has garnered strong shareholder support, with over 93% approval at the recent Extraordinary General Meeting, underscoring confidence in QMines’ strategic direction.

Funding and Financial Backing

Backing the acquisition and near-term development activities is a $1 million convertible note provided by one of QMines’ largest shareholders. The note carries a 15% annual interest rate, payable in cash or shares, and is secured against the Mount Mackenzie tenements and shares of the acquired company. This favourable financing arrangement aligns the interests of the noteholder with QMines’ long-term objectives and provides the company with flexibility to advance its exploration plans.

Exploration and Drilling Plans

With due diligence complete, QMines is preparing for a maiden drilling program aimed at verifying historical high-grade gold and silver intercepts, which include impressive results such as 26 meters at 12.78 grams per tonne gold and 34 grams per tonne silver. The program will also target resource expansion along strike and at depth, feeding into updated geological models and mine planning.

Initial site works, including drill pad construction and access upgrades, are expected to commence shortly, with drilling to follow the current program at the nearby Develin Creek project. The timing is planned to take advantage of dry season conditions, which should facilitate efficient operations.

Regional Synergies and Growth Potential

The Mount Mackenzie Project sits approximately 140 kilometres northwest of QMines’ flagship Mt Chalmers Project and just 45 kilometres from Develin Creek, positioning it well to leverage regional infrastructure and operational synergies. This acquisition complements QMines’ existing copper-gold portfolio, enhancing optionality across multiple processing and mining scenarios.

Following the acquisition, QMines’ combined resource base across Mt Chalmers, Develin Creek, and Mount Mackenzie is expected to reach 19.3 million tonnes, a significant increase that materially strengthens the company’s long-term development plans. Management emphasizes the potential for a scalable, long-life mining operation that can deliver sustained shareholder value.

Management Perspective

Executive Chairman Andrew Sparke highlighted the strategic value of the acquisition, noting the operational synergies and the strong financial support from major shareholders as key enablers. Meanwhile, the Managing Director of Resources & Energy Group, Daniel Moore, expressed confidence in QMines’ capability to unlock the project’s upside and integrate it within their regional production strategy.