Pacgold Limited (ASX: PGO) has announced it will acquire 100% of the White Dam Gold Operation in South Australia from GBM Resources Ltd (ASX: GBZ). Pacgold, an ASX-listed mineral exploration company with projects in Queensland, is aiming for near-term gold production and cash flow through this acquisition. The deal includes open pit mines, a heap leach pad, a personnel camp, and a gold extraction plant with related infrastructure.
The White Dam Gold Operation has a history of production, yielding approximately 180,000 ounces of gold from heap leaching 7.5 million tonnes of ore between 2010 and 2018. The operation includes two pits, Hannaford and Vertigo, with a remaining JORC 2012 Resource of 4.6 million tonnes at 0.7 g/t Au for 102,000 ounces. Pacgold intends to focus on retreatment and re-crushing of existing heap leach material, which the company believes will require minimal expansion capital.
The total consideration for the acquisition includes an upfront cash payment of $1.2 million, the issue of 15 million Pacgold shares subject to a 12-month escrow period, and a contingent payment of $2.2 million upon achieving commercial production of at least 5,000 ounces of gold at the project. Pacgold has engaged Bell Potter and Taylor Collison to manage a capital raise to fund the acquisition and restart the White Dam project. Completion of the acquisition is expected in December 2025.
Matthew Boyes, Pacgold’s Managing Director, commented that the acquisition provides a clear pathway to near-term gold production and cash flow. He also noted the strategic location of the project near Broken Hill, the existing JORC resource base, and the potential for resource growth and exploration upside. A three-phase approach to recommence operations at White Dam will be implemented following completion of the acquisition.
