QMines Ltd (ASX:QML) is parting ways with its non-core gold and base metal projects so it can focus on copper development at the flagship Mt Chalmers camp in Queensland.
The multi-element explorer has just inked an option agreement, valued at roughly half a million dollars, to divest its Silverwood, Warroo and Herries Range projects to Queensland Critical Minerals Limited (QCML).
Thanks to the option (priced around A$23,000), QCML is poised to acquire QMines’ gold and base metal project portfolio at any time in the next 12 months.
If it agrees to proceed, QCML will pay the ASX-lister A$100,000 in cash and A$375,000 in shares upon a planned listing in Australia or in Canada.
QCML will also cover all rents, rates and outgoings on the Silverwood, Warroo and Herries Range tenements incurred during the 12-month option period.
QMines tenements covered under the option agreement.
QMines managing director Andrew Spark believes a focused exploration strategy will deliver faster and more compelling outcomes for shareholders.
“The divestment of these assets will allow QMines to focus on the growth and development of its Mt Chalmers copper project while retaining exposure to the upside of these assets via our shareholding in QCML,” he explained.
“We believe that advanced copper development project(s) that can be grown and developed quickly is what will deliver future growth of our company.”
About QMines
QMines is a Queensland-based exploration and development company, focused on advancing its flagship Mt Chalmers copper property just 17 kilometres northeast of Rockhampton.
Mt Chalmers is a high-grade historic mine that produced 1.2 million tonnes of ore at 2.0% copper, 3.6 g/t gold and 19 g/t silver between 1898 and 1982.
The Mt Chalmers project now has a measured, indicated and inferred JORC resource of 11.86 million tonnes at 1.22% copper equivalent for 144,700 tonnes of contained copper.
QMines’ objective is to grow its resource base, consolidate assets in the region and assess commercialisation options.
The company has commenced an aggressive exploration program (spanning more than 30,000 metres) in a bid to leverage to a growing resource and further Mt Chalmer’s development.
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