QMines Completes $1.4M Sale of Drilling Business
Key points
- $1.4M Divestment: Sale of drilling subsidiary to unlock capital.
- Increased Operational Focus: Management to concentrate on exploration and development.
- Drilling Operations Maintained: Rig stays at Mt Chalmers to support drilling program.
Full summary
QMines Limited (ASX:QML) has completed the sale of its wholly owned drilling subsidiary, QDrilling Pty Ltd, to Gas Field Services Pty Ltd for $1.4 million. This strategic divestment aims to simplify operations, unlock capital, and concentrate resources on advancing the Mt Chalmers Copper-Gold Project towards production. The transaction includes five tranches of payments, with the final $250,000 payable in cash or drilling services. The sale will not interrupt ongoing drilling operations at Mt Chalmers, where QMines is currently undertaking a 129-hole, 20,000-metre drilling program. The divestment supports QMines' strategy of utilizing specialist contractors and focusing on exploration and development activities.
Outlook
QMines aims to accelerate resource growth and development at Mt Chalmers with the proceeds from the sale.
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