PERTH (miningweekly.com) – Junior GBM Resources will raise A$7.4-million in a share placement to institutional and sophisticated investors.
The company would place some 70-million shares, at a price of 10c each, under its existing placement capacity, while directors Peter Mullens and Peter Rohner have indicated that they would subscribe for a further 1-million and 3-million shares respectively, subject to shareholder approval, to raise an additional A$400 000.
GBM told shareholders on Wednesday that the funds raised would be used to progress drilling programmes in the Drummond basin, funding the Twin Hills gold project’s acquisition payment, providing working capital and funding the cost of the share issue.
GBM earlier this year signed a binding tenement sale agreement to acquire the Twin Hills gold project, in Queensland, for some A$2-million in cash and the assumption of the financial assurance in respect of the environmental authorities over the tenements, which amounts to a further A$1.48-million.
The Twin Hills deposit currently hosts a Joint Ore Reserves Committee-compliant resource of 6.9-million tonnes, at 2.8 g/t gold for 633 000 oz of contained gold.