GBM Resources (ASX:GBZ) has executed a farm-in agreement with Wise Walkers to earn a 70% joint venture interest in the Twin Hills Gold Project in Queensland.
Twin Hills, which covers 1,102km2, sits in the “highly prospective” Drummond Basin and has a combined resource of 23.11 million tonnes @ 1.3 grams per tonne (g/t) gold and 6.5g/t silver for 992,000 ounces of gold and 4.82 million ounces of silver.
Wise Walkers will help the $9.25 million market capitalised company advance Twin Hills to a decision to mine through sole funding $6 million of exploration expenditure over an 18-month period.
Subject to securing shareholder approval and Newmont Corporation (ASX:NEM) exercising or waiving its right of first refusal to match the transaction, GBM Resources will also receive an additional $6 million cash from Wise Walkers, to earn the 70% interest.
Wise Walkers has already paid GBM $1 million. A further $2 million has been received at the company’s solicitors trust account, with the remaining $3 million to be paid upon satisfying the conditions precedent.
CEO Peter Rohner says the company continues to realise the value from advancing its assets.
“GBM’s focus continues to be on the prospective Drummond Basin, where large high-grade epithermal gold deposits exist and where it has expanded JORC resources to 1.84 million ounces of gold,” Rohner says.
“This farm-in agreement and the agreement with Newmont on the Mt Coolon Project, provides funding and support to advance these two large prospective tenement packages.
“The sale component of this agreement provides the necessary funding to repay the convertible note when completed. GBM will now focus on advancing the Yandam Gold Project.”
Wise Walkers is mainly engaged in equity investment, asset management, strategic planning, and project consulting, with assets under management exceeding $1 billion.
GBM Resources is a Queensland-based mineral explorer and developer focused on discovering gold and copper deposits in Eastern Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: GBM Resources
