Adelong Gold (ASX:ADG) has completed the divestment of its remaining 49% interest in Challenger Mines to Great Divide Mining (ASX:GDM).
The finalisation follows overwhelming shareholder approval at GDM’s general meeting on Jan. 27 and the satisfaction of all standard regulatory conditions.
Under the terms of the agreement, Adelong transferred its 10 million CMPL shares in exchange for 10 million fully paid ordinary shares in GDM, which were issued on Feb. 2.
The completion marks the formal termination of the CMPL joint venture, allowing Adelong to transition from an active partner to a royalty holder.
While the operational responsibility now shifts entirely to GDM, Adelong retains a strategic interest in the project's success through a 1% net smelter return royalty on future gold production from the Challenger Gold Project.
The royalty is capped at the first 125,000 ounces produced, providing Adelong with long-term exposure to the project’s upside while streamlining its current balance sheet.
The company stated that the move aligns with its broader strategy to rationalise its portfolio and focus capital on high-priority exploration targets.
At the time of reporting, the share prices of Adelong Gold and Great Divide Mining were $0.010 and $0.040, respectively.