Mt Mackenzie Acquisition Raises Questions on QMines’ Next Growth Moves

Strategic Acquisition Completed

QMines Limited (ASX, QML) has officially completed the acquisition of the Mt Mackenzie Gold and Silver Project from Resources & Energy Group, marking a significant milestone in its growth strategy. The deal, first announced in April and June 2025, brings Mt Mackenzie fully into QMines’ portfolio, complementing its existing Mt Chalmers and Develin Creek projects in Central Queensland.

Located within trucking distance of QMines’ other assets, Mt Mackenzie is an advanced-stage project boasting a JORC 2012 Mineral Resource of 3.4 million tonnes grading 1.18 grams per tonne gold and 9 grams per tonne silver. This addition not only increases QMines’ precious metals exposure but also enhances its hub-and-spoke development approach, aiming to optimise operational efficiencies across nearby sites.

Financial and Shareholder Implications

The acquisition consideration totals $2.485 million, split between $1 million in cash and 33 million QMines shares issued at a deemed price of 4.5 cents each. The cash component was funded partly through a convertible note previously announced, with the remaining payment completed upon acquisition. Notably, Resources & Energy Group now holds approximately 7% of QMines’ issued capital, becoming the company’s third-largest shareholder and maintaining a vested interest in Mt Mackenzie’s future upside.

Looking Ahead, Exploration and Development

QMines is preparing to launch its maiden drilling program at Mt Mackenzie, with details expected to be announced shortly. This exploration phase is critical to unlocking further value, potentially expanding the resource base and advancing the project toward production. Executive Chairman Andrew Sparke emphasised the strategic fit of Mt Mackenzie within QMines’ vision to build a long-life, multi-asset copper and gold operation in Central Queensland.

With three advanced-stage projects now under its control, QMines is well-positioned to scale production, extend mine life, and deliver enhanced shareholder value. The company’s focus on sustainable copper production aligns with broader market trends favoring critical minerals essential for clean energy technologies.

Broader Market Context

This acquisition underscores the ongoing consolidation and development activity within Australia’s copper-gold sector, where companies like QMines seek to leverage regional synergies and resource scale. The integration of Mt Mackenzie could provide operational leverage and cost efficiencies, factors that investors will watch closely as drilling results and development plans unfold.