Adelong Gold Limited (ASX:ADG) has issued a Deadlock Notice to Great Divide Mining Ltd (ASX: GDM) regarding the Adelong Venture Shareholders and Funding Agreement. Adelong Gold is an Australian mineral exploration company progressing towards gold production at its flagship Adelong Goldfield Project in NSW and advancing high-grade exploration at the recently acquired Apollo and Lauriston Gold Projects in Victoria. The company’s board considers that there is a fundamental disagreement between the parties regarding the purported approval of the first annual programme and budget for Challenger Mines Pty Ltd (CMPL), the joint venture entity operating the Challenger Gold Mine.
The ADG Board believes that the first annual programme and budget was not validly approved per the JV Agreement. The company also contests GDM’s announcements on 13 August 2025, particularly the “Challenger Gold Mine 1st Annual Plan” release, which ADG deems factually and legally incorrect. Key concerns involve the adequacy of technical work supporting production targets and the basis for certain cost assumptions. According to Adelong, they have tried to constructively engage with GDM to resolve these issues, but have been unsuccessful.
Adelong Gold’s Managing Director, Ian Holland, stated the company is prepared to fund and advance the Challenger project, but only with a technically supported work programme offering an attractive risk-adjusted return. He added that the current information does not meet that threshold. The company also notes discrepancies between GDM’s announcements and ADG’s understanding of events, particularly regarding ADG’s agreement or approval of the 1st Annual Plan. Adelong states they have not approved the release of production targets contained in GDM’s 13 August 2025 release, and that information received indicates a significant deviation from the 2022 Scoping Study in terms of the mine plan and processing flowsheet.
Under the JV Agreement’s deadlock mechanism, senior representatives from both companies are required to meet within ten business days to seek a resolution. If no agreement is reached, the dispute will proceed to mediation. Adelong Gold has committed to keeping shareholders informed of any material developments. They remain focused on maximising long-term value from the Adelong Project and their wider Victorian exploration portfolio.
