GBM Resources (ASX:GBZ) successfully raises $6.5m
Henslow and Bell Potter acted as Joint Lead Managers to raise a total of $6.5m. Funds raised will be used to continue GBM’s strategy and consolidation of assets in the Drummond Basin along with the further expansion of drilling activities at the Mount Coolon Gold Project. The placement was strongly supported by a range of institutional and existing professional investors.
Following the raise, GBM will be in a strong position with cash and marketable securities (i.e. shares in Novo Resources Corp. following the completion of the Malmsbury JV agreements in the coming weeks) of over $17.5m.
Concurrent with the raise, GBM advised that it had signed a binding Heads of Agreement to acquire 100% of the Yandan Gold Project. The Yandan Project produced approximately 350,000 oz gold and currently contains a JORC 2004 Mineral Resource estimate of 8.56 Mt at 1.5 g/t Au for 401,000 ounces of gold and includes established mine infrastructure such as power, water dams and access to the Suttor River, tailings and previous plant footprint strategically located ~40 km west of GBM’s flagship Mount Coolon Gold Project in the Drummond Basin.
GBM Resources is a mineral exploration and development company focused on the discovery of world-class gold and copper deposits in Eastern Australia.
The company has a high calibre project portfolio, hosting district-scale mineral systems, located in a number of premier metallogenic terrains including the Drummond Basin, Mt Morgan district and the Mt Isa Inlier in Queensland, and the Malmsbury Project in the prolific Victorian Goldfields.
This is the second capital raise that Henslow has advised GBM on and we look forward to working with them as they continue to progress drilling activities in the highly prospective Drummond Basin.