- GBM Resources (GBZ) receives firm commitments to undertake a $7.4 million placement
- The company will issue 70 million ordinary fully paid shares to institutional and sophisticated investors at 10 cents to raise $7 million
- Subject to shareholder approval, company directors will subscribe for four million shares to raise a further $400,000
- Once received, GBZ will use the money to fund the acquisition of the Twin Hills Project and fund drilling programs in the Drummond Basin
- Shares in GBZ are up 9.09 per cent on the market and are trading at 12 cents at 12:37 pm AEST
GBM Resources (GBZ) has received firm commitments to undertake a $7.4 million placement.
The company entered a trading halt on September 13 but did not disclose how much it intended to raise or what it would use the funds for once received.
GBM will issue 70 million ordinary fully paid shares to institutional and sophisticated investors at 10 cents to raise $7 million.
Subject to shareholder approval, Directors Peter Mullens and Peter Rohner will subscribe for one million and three million shares, respectively, to raise a further $400,000.
Henslow and Taylor Collison will act as joint lead managers.
Once received, GBZ will use the money to fund the acquisition of the Twin Hills Project and fund drilling programs in the Drummond Basin.
In mid-July, GBZ announced it had signed a binding tenement sale agreement to acquire 100 per cent of the Twin Hills Gold Project from NQM Gold 2.
Total consideration for the acquisition is $2 million in cash and financial assurance of $1.48 million.
Twin Hills lies in the Drummond Basin in Queensland and is considered highly prospective for gold mineralisation.
Initial analysis has suggested that high-grade shoots at the 309 and Lone Sister deposits may be open at depth.
Both deposits have previously intersected significant gold mineralisation, indicating the potential for bonanza gold grades and broad intersections.
Shares in GBZ were up 9.09 per cent on the market and were trading at 12 cents at 12:09 pm AEST.