Great Boulder Resources (ASX: GBR) resets development path with Peak Hill acquisition

Great Boulder (ASX:GBR) has materially reshaped its development pathway after agreeing to acquire Westgold’s Peak Hill Gold Project, adding a 481,000oz Mineral Resource and a second development asset alongside its existing 1.02Moz Side Well Gold Project. The transaction also includes an Ore Purchase Agreement covering Westgold’s Bluebird, Tuckabianna and Fortnum mills, alongside a separate non binding strategic collaboration to evaluate options that could help fast track Side Well.

The acquisition is being funded alongside a $40 million placement, with Great Boulder expecting a pro forma net cash balance of $25 million following completion. Great Boulder Managing Director Andrew Paterson spoke with MarketOpen to further clarify the acquisition rationale, capital allocation priorities and what investors should watch next.

Why acquire Peak Hill now instead of advancing Side Well as a standalone project?

We have been looking for complementary assets for the past year with a focus on resource ounces on granted mining leases, and Peak Hill fits those criteria. This transaction provides a clear line of sight on production while also providing strong exploration upside in a proven gold field where there has been no mining since 1997. Peak Hill adds an existing 481,000oz JORC Mineral Resource, seven granted mining leases and a defined pathway to process ore through Westgold’s regional mills under the Ore Purchase Agreement. Side Well remains a significant asset with a 1.02Moz Mineral Resource, but this transaction adds another source of ounces and expands our development options.

What made the timing compelling was the ability to combine the acquisition with both the Ore Purchase Agreement and the broader relationship with Westgold. That means we can assess a pathway at Peak Hill that uses existing regional processing infrastructure rather than developing standalone processing infrastructure from day one. At the same time, the strategic collaboration creates an opportunity to evaluate options that could assist in the development of Side Well. That puts our Side Well ounces more firmly on a development pathway, which is also an important benefit of this deal with Westgold.

How will the $40 million raise be allocated, and what milestones need to be delivered before additional capital is required?

The immediate purpose of the $40 million placement is to complete the acquisition and ensure we are funded to move quickly into execution across both projects. Following completion of the acquisition and placement, we expect to hold a pro forma net cash balance of $25 million.

Over the next six months, our focus is a combined 60,000 metre multi rig drilling campaign across Peak Hill and Side Well. At Peak Hill, that work is designed to support an updated Mineral Resource Estimate within six months of completion. We are also progressing engineering studies and pre production activities as we work toward our stated aim of having Peak Hill in mining ready status within 12 months of completion. The company has also stated it has sufficient funds to complete its planned work programs.

What still needs to be proven before Peak Hill can move into production under the Ore Purchase Agreement?

The Ore Purchase Agreement materially changes the pathway because it gives us access to existing processing infrastructure, but there is still work required before ore can be delivered. We need to complete the acquisition, complete our drilling programs and update the Mineral Resource Estimate.

We are also progressing pre production activities as we work toward making Peak Hill mining ready. Under the Ore Purchase Agreement, first ore delivery is expected to occur within 18 months of completing the acquisition, unless both parties agree otherwise. There are also agreed ore specifications and delivery requirements that need to be met before ore can be processed through Westgold’s mills. Our focus now is executing the work required to move toward that outcome.

How will management prioritise Peak Hill and Side Well, and what determines which project moves first?

We do not see Peak Hill and Side Well as competing assets. This transaction gives us two assets that can be advanced in parallel. Peak Hill adds an existing 481,000oz Mineral Resource and an Ore Purchase Agreement pathway, while Side Well remains a 1.02Moz resource asset located 25km from Westgold’s Bluebird Mill.

Over the next six months, we plan to complete a combined 60,000 metre drilling campaign across both projects while progressing pre production activities at Peak Hill. Separately, the strategic collaboration with Westgold will evaluate options that could help fast track Side Well. Our immediate focus is advancing both assets and delivering the milestones already outlined to the market.

Execution now becomes the focus

The transaction has materially expanded Great Boulder Resources asset base and introduced a clearer pathway to process Peak Hill ore using existing infrastructure, while preserving optionality at Side Well through the separate strategic collaboration with Westgold.

The market will now focus on execution. Over the next 6 to 18 months, investors will be watching for drilling outcomes, an updated Peak Hill resource estimate, progress toward mining readiness and whether management can convert this expanded asset base into a clearer development pathway.

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