Why Diatreme Is Betting Big on Moonlight’s ASX Debut with Clermont Sale

Strategic Divestment of Clermont Gold Project

Diatreme Resources Limited (ASX, DRX) has announced a significant strategic move, agreeing to sell its Clermont Gold Project in Queensland to Moonlight Resources Limited, an unlisted exploration company preparing for an ASX initial public offering (IPO). This divestment marks a clear shift in Diatreme’s focus towards its core silica sands assets, while maintaining a foothold in gold exploration through its new stake in Moonlight.

Transaction Structure and Consideration

The consideration for the Clermont Project includes A$250,000 in cash and A$3.25 million worth of Moonlight shares and performance rights, to be issued under Moonlight’s IPO prospectus. Following the IPO, Diatreme is expected to hold between 17.1% and 19.9% of Moonlight’s share capital, positioning it as a major shareholder with the right to appoint a director to Moonlight’s board. This arrangement allows Diatreme to benefit from any future upside in the Clermont Project’s development without the operational burden.

Moonlight’s Ambitions and Portfolio

Moonlight Resources is targeting rapid mineral resource delineation across several drill-ready greenfield gold discoveries, alongside a broad pipeline of gold and copper targets. The company also holds a substantial portfolio of early-stage rare earth element and uranium tenements, particularly in the MacDonnell Ranges of the Northern Territory. Moonlight aims to list on the ASX by the end of 2025, seeking to raise a minimum of A$5 million through its IPO.

Conditions and Risks Ahead

The completion of the sale is subject to multiple conditions precedent, including satisfactory due diligence by both parties, regulatory approvals for tenement transfers, and successful ASX listing of Moonlight. These conditions introduce execution risk, with the transaction expected to close by mid-2026 if all hurdles are cleared. Diatreme’s CEO Neil McIntyre emphasised that the Clermont asset is non-core and that this deal enables a transition to a team focused on exploration and development, while retaining exposure to potential value growth.

Diatreme’s Strategic Focus

With this divestment, Diatreme is sharpening its focus on its silica sands projects, including the Northern Silica Project and Galalar Silica Sand Project in Far North Queensland, both strategically located near the Cape Flattery Port. These projects are positioned to supply high-grade silica sands critical for solar photovoltaic manufacturing, aligning with global decarbonisation trends. Diatreme’s partnership with Sibelco and its designation as a Major Project by the federal government underscore the significance of its silica portfolio.