Pacgold to Acquire White Dam with 102,000oz JORC Resource and Historic 180,000oz Output
Pacgold Limited has agreed to acquire the White Dam Gold Operation in South Australia, unlocking near-term gold production and cash flow with minimal upfront capital. The acquisition complements its Queensland projects and sets the stage for growth.
- Acquisition of 100% White Dam Gold Operation from GBM Resources
- Historic production of ~180,000oz gold and 102,000oz JORC resource remaining
- Existing infrastructure enables near-term cash flow via heap leach retreatment
- Consideration includes upfront cash, shares under escrow, and contingent payments
- Capital raise underway to fund acquisition and phased operational restart
A Transformational Acquisition
Pacgold Limited (ASX – PGO) has announced a significant step forward with its agreement to acquire the White Dam Gold Operation in South Australia from GBM Resources Ltd. This move brings a fully operational gold project with a strong production history into Pacgold’s portfolio, positioning the company for near-term production and cash flow.
White Dam has a track record of producing approximately 180,000 ounces of gold from heap leaching 7.5 million tonnes of ore at an average grade of 0.94 grams per tonne. Importantly, a remaining JORC 2012 resource of around 102,000 ounces gold remains, providing a solid base for future extraction.
Infrastructure and Production Potential
The acquisition includes extensive infrastructure – open pit mines, a heap leach pad, a fully staffed camp, and an operational gold extraction plant. Pacgold plans to target near-term cash flow by retreating and re-crushing existing heap leach material, requiring minimal capital expenditure upfront. This strategy leverages the existing assets to unlock value quickly while laying the groundwork for resource expansion.
Capital expenditure of approximately AUD 800,000 is earmarked for maintenance and power system upgrades, with the plant reported to be in good working order. The company’s phased approach to restarting operations begins with heap leach retreatment, followed by near-mine exploration and longer-term regional exploration and potential acquisitions.
Strategic Fit and Funding
Located about 80 kilometres southwest of Broken Hill, White Dam’s proximity to established mining services and workforce hubs adds strategic value. Pacgold’s Managing Director, Matthew Boyes, highlighted how the acquisition complements their existing Queensland gold and antimony projects, creating a diversified portfolio with both near-term production and exploration upside.
The total acquisition consideration includes a AUD 1.2 million upfront cash payment, 15 million fully paid ordinary shares subject to a 12-month voluntary escrow, and a contingent payment of AUD 2.2 million payable upon achieving commercial production milestones. To support the acquisition and restart, Pacgold has engaged Bell Potter and Taylor Collison as Joint Lead Managers to conduct a capital raise targeting professional and sophisticated investors.
Looking Ahead
Completion of the acquisition is subject to shareholder approval, regulatory consents, and resolution of intercompany debts. Pacgold expects to complete the transaction by December 2025 and has requested a voluntary trading suspension to facilitate the capital raise. The company’s clear pathway to recommence gold production at White Dam, combined with its existing projects, positions it for a dynamic growth phase.
While the resource estimate is based on historical data with moderate confidence, the operational infrastructure and phased development plan provide a compelling case for unlocking value. Investors will be watching closely as Pacgold advances this next chapter.
Bottom Line?
Pacgold’s White Dam acquisition sets a promising stage for near-term gold production and portfolio growth, but execution and funding remain key watchpoints.
Questions in the middle?
- Will Pacgold successfully complete the capital raise to fund the acquisition and restart?
- How quickly can Pacgold ramp up production from heap leach retreatment to generate cash flow?
- What exploration results and resource upgrades can be expected from near-mine drilling programs?
