Joint Venture Deadlock Threatens Adelong Gold Project Progress
Adelong Gold Limited has formally declared a deadlock in its joint venture with Great Divide Mining, prompting a dispute resolution process as both parties contest the status of their collaboration.
- Adelong Gold issues Deadlock Notice under joint venture agreement
- Great Divide Mining disputes the validity of the deadlock claim
- Dispute resolution procedures formally invoked by Adelong Gold
- Joint venture concerns center on annual programme and budget approval
- Potential impact on timelines for Adelong Gold Project development
Background to the Dispute
Adelong Gold Limited (ASX – ADG) and Great Divide Mining Ltd (GDM) have entered a formal dispute regarding their joint venture on the Adelong Gold Project in New South Wales. The conflict arose after Adelong Gold issued a Deadlock Notice on 13 August 2025, citing an impasse under the terms of their Joint Venture Shareholders and Funding Agreement.
Great Divide Mining has contested the validity of this notice, asserting that no deadlock has occurred. In response, Adelong Gold has reaffirmed its position that the deadlock is legitimate based on objective criteria outlined in the agreement and has escalated the matter by invoking the dispute resolution procedures.
Implications for the Adelong Gold Project
The joint venture, formed earlier this year, was designed to accelerate gold production at the Adelong Goldfield Project, which hosts a substantial 188,000-ounce gold resource. GDM earned a 51% interest through a staged farm-in agreement, targeting first gold production within 12 months. The current deadlock centers on disagreements over the approval of the annual programme and budget, critical elements for advancing the project.
This dispute introduces uncertainty around the project’s timeline and operational execution. While both parties have expressed a commitment to good faith negotiations, the invocation of formal dispute resolution signals a potentially protracted process that could delay development milestones.
Broader Strategic Context
Adelong Gold is simultaneously advancing exploration at its Apollo and Lauriston Gold and Antimony Projects in Victoria, alongside maintaining a lithium portfolio in Brazil. The resolution of this joint venture dispute is pivotal not only for the Adelong Goldfield Project but also for the company’s broader growth strategy and investor confidence.
Managing Director Ian Holland has emphasized the company’s intent to engage constructively with Great Divide Mining to resolve the deadlock. However, the outcome remains uncertain, and market participants will be watching closely for further updates.
Bottom Line?
The unfolding dispute between Adelong Gold and Great Divide Mining could reshape the future of the Adelong Gold Project and test the resilience of their partnership.
Questions in the middle?
- What specific disagreements led to the deadlock over the annual programme and budget?
- How might this dispute affect the timeline for first gold production at Adelong?
- Could the deadlock trigger changes in joint venture ownership or strategic direction?
