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GBM signs on for Malaysian gold mine

14th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior GBM Resources has inked a memorandum of understanding (MoU) with Angka Alamjaya Sendirian Berhard (AASB) over the Lubuk Mandi gold mine, in Malaysia.

The mine had historically produced some 108 000 oz of gold from two shallow pits, while the associated processing plant is rated at 300 000 t/y and involved single-stage crushing to stockpile and mill.

The project covers some 404.7 ha and includes 1.3-million tons of tailings, which had the potential for further gold recovery, GBM said.

The mine and processing plant have been on care and maintenance since 2000.

The MoU, which was nonbinding, allowed the parties to negotiate on binding terms, with the view to undertake a share swap arrangement, under which GBM would acquire a majority stake in AASB.

GBM told shareholders on Tuesday that a due diligence process was currently under way, with initial indications pointing towards an early start-up scenario, a requirement to achieve a resource, and funding options and valuations.

The company said that the project represented an excellent opportunity to transition from explorer to producer.

GBM had announced earlier this month that it would be diversifying its project portfolio, after a strategic review of operations suggested adding gold to the portfolio mix.

Edited by Creamer Media Reporter

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