- 01QMines sells QDrilling for $1.4m.
- 02Mt Chalmers rig stays for 129-hole campaign.
- 03Focus shifts to DFS and development.
QMines (ASX: QML) has completed the $1.4 million sale of its wholly owned QDrilling subsidiary to Gas Field Services, freeing capital for exploration and development at its Mt Chalmers copper-gold project in central Queensland.
The divestment removes the costs and responsibilities of operating a drilling business while retaining access to the existing drilling rig at Mt Chalmers.
QMines is undertaking an expanded 129-hole exploration campaign covering approximately 20,000 metres, with the rig remaining on site under its new owner.
The sale preserves drilling access while shifting equipment ownership and maintenance obligations to the buyer, supporting the company’s stated aim of concentrating resources on mine development.
The transaction comes as the company advances a definitive feasibility study and project approvals ahead of a potential final investment decision on Mt Chalmers.
Deferred Payment Schedule
Gas Field Services has acquired 100% of QDrilling’s issued capital, with the $1.4m consideration payable in five tranches rather than as an immediate lump sum.
Four scheduled cash instalments comprise $250,000 due on 31 December 2026, another $250,000 on 31 March 2027, a further $250,000 on 30 June 2027, and $400,000 on 30 September 2027.
The remaining $250,000 can be paid in cash or satisfied through drilling services, with QMines retaining the choice between those alternatives.
Deferred payments are secured by a security interest over the shares in QDrilling and its drilling equipment, providing contractual protection while the sale proceeds are collected.
Drilling Campaign on Track
The drilling rig will remain at Mt Chalmers despite the change of ownership, enabling exploration work to continue without the interruption that could accompany the sale of an operating subsidiary.
The 129-hole program aims to extend the existing Mt Chalmers mineral resource estimate, investigate prospective mineralised corridors and assess deposits that could eventually be incorporated into the mine plan.
QMines holds a Mt Chalmers MRE of 11.3 million tonnes and a proved and probable ore reserve of 9.6Mt, providing a defined resource and reserve base for its development work.
Additional deposits remain outside the current mine plan, including Develin Creek with a 4.70Mt MRE and Woods Shaft with a 0.54Mt inferred MRE.
The drilling program will test opportunities to expand the resource base, although bringing any additional deposits into the mine plan remains a potential outcome rather than an established result.
Management Refocus
QMines intends to direct the released capital and management capacity towards resource growth, engineering, approvals, and its ongoing DFS rather than maintaining a drilling equipment business.
“The sale of QDrilling is another positive step in simplifying our business and sharpening our focus on what matters most, growing our resources and bringing Mt Chalmers into production,” executive chair Andrew Sparke said.
"With multiple high-impact exploration targets, a DFS underway and a clear pathway towards development, we believe our capital and management resources are best directed towards unlocking the significant potential of the Mt Chalmers project."
QMines plans to use specialist contractors for key operational activities while its internal team focuses on resource growth, project approvals and mine development.
The company’s wider Queensland portfolio includes Develin Creek and Mt Mackenzie, although Mt Chalmers remains the immediate focus of the DFS and the expanded drilling campaign.
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