PERTH (miningweekly.com) – ASX-listed GBM Resources has inked a heads of agreement with Stibium Mining to acquire its subsidiary Millstream Resources in exchange for 150-million fully paid ordinary shares.
Millstream holds an option to earn a 50% interest in the White Dam gold operation, in South Australia, a heap leach operation that has since 2010 produced around 170 000 oz of gold from the heap leach of around 7.5-million tonnes of ore mined from two openpits.
GBM told shareholders on Wednesday that the successful formation of a joint venture (JV) with White Dam owner Round Oak Minerals could provide the junior with the opportunity to generate cash while assessing opportunities to restart mining operations to exploit remnant openpit mineralisation and other previously defined mineralised zones at White Dam, while also giving GBM the opportunity to explore other associated tenements.
The agreement to acquire Millstream is subject to a number of conditions, including all third party, regulatory and government approvals, and Stibium completing a capital raise of at least A$700 000, and up to A$1.5-million in GBM, at a price of 0.3c a share, as well as Millstream entering into a binding JV agreement with Round Oak.