GBM to vend Mt Morgan
PERTH (miningweekly.com) – Gold hopeful GBM Resources has struck a definitive agreement to divest of its Mt Morgan project, in Queensland.
The company will vend Mt Morgan into a TSX-V-listed Smartset, in exchange for more than 20.45-million shares, with Smartset to also make a maximum cash payment of C$282 500 to reimburse GBM for native title, landholder access and compensation agreements, and on exploration expenditure.
The transaction would give GBM a 47.5% interest in Smartset prior to a C$8-million concurrent capital raise by the buyer.
GBM told shareholders that the disposal of a noncore asset into a focused vehicle would deliver accelerated exploration value, while allowing GBM to maintain focus on its flagship Drummond basin gold assets.
“While finalising the required documentation has taken longer than anticipated, we are very pleased to have now executed the definitive agreement for the sale of our Mt Morgan gold/copper project with the proven skillset of the Smartset team,” said GBM MD and CEO Peter Rohner.
“It is a further, consistent step in the execution of GBM’s stated portfolio management strategy. We also look forward to assisting the Smartset team in completing the planned financing to allow us to accelerate the exploration and potential value unlock of the Mt Morgan project, while protecting GBM’s own balance sheet and core project focus in the Drummond basin.”
The transaction is subject to a number of conditions, including TSX-V and ASX approvals, shareholder approval and the completion of the C$8-million capital raise, as well as other customary conditions.
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