PERTH (miningweekly.com) – ASX-listed junior GBM Resources on Thursday told shareholders that it was "considering its position" after gold junior Minjar Gold terminated a sales agreement over the Twin Hills gold project, in Western Australia.
Minjar and GBM in September of last year struck a sales agreement over the Twin Hills project that would see GBM pay A$1.5-million in cash for the asset, subject to a number of conditions, including third party approvals and approvals for the transfer of the tenements.
The agreement was also subject to GBM completing a capital raise of at least A$7-million.
GBM said on Thursday that the company had notified Minjar that the conditions precedent were, in its view, either waived or satisfied, however, Minjar has issued the company with a letter giving notice of the termination of the agreement, saying that conditions precedent had not been satisfied.
GBM told shareholders that it did not agree with Minjar’s view, and is currently considering its position, including considering legal remedies that could be available to the company.
The Twin Hills deposits are estimated to contain some 6.9-million tonnes of ore, grading 2.8 g/t gold for 633 000 oz of contained gold.