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GBM secures funding for Drummond Basin drilling

9th September 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Mineral explorer GBM Resources has entered into a funding package of up to A$10-million to fund exploration and mineral resource upgrades at its Drummond basin tenements, in Queensland.

The ASX-listed company has signed a binding term sheet for up to A$10-million through a secured convertible note instrument with wholesale investment management company Collins Street Asset Management.

The convertible note would have a three-year term and an interest rate of 10.5%, payable monthly in advance, and a conversion price of 8.75c. The first note will be issued under GBM’s current placement capacity, converting into 57.14-million shares in the company, with settlement expected in late September.

The first note will raise A$5-million before costs.

The settlement of the second note is subject to shareholder approval at the company’s annual general meeting in November.

Additionally, GBM on Friday announced that it had also received firm commitments to raise a further A$305 000 under a share placement, priced at 5c a share. The company is expected to issue 6.1-million shares under its existing placement capacity.

“This funding package, along with receivables and liquid securities provides GBM sufficient funds to continue to advance its flagship Drummond Basin gold project,” GBM MD and CEO Peter Rohner said.

“Key deliverables over the next 12 months include, continued value realisation of non-core assets and accelerated exploration in the Drummond basin by GBM to continue to substantial grow our Joint Ore Reserves Committee-compliant resource position.”

Funds raised will go towards accelerating the exploration drilling and resource expansion at Twin Hills, advancing the mineral resource estimate updates at Yandan, Illamahta and Twin Hills, initial feasibility work to assess resource extraction options, and advancing regional exploration targets. 

Edited by Creamer Media Reporter

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