- GBM Resources (GBZ) signs a binding tenement sale agreement (TSA) with NQM Gold 2 to acquire 100 per cent of the Twin Hills Gold Project
- Total cash consideration for the acquisition is $2 million along with financial assurance of $1.48 million
- The acquisition is subject to approval under the Mineral Resources Act 1989 and third-party consent
- The Twin Hills Gold Project is located in the Drummond Basin in Queensland and previous drilling has intersected bonanza gold grades
- GBM is up 10.7 per cent with shares trading at 15.5 cents at 11:26 am AEST
GBM Resources (GBZ) has signed a binding tenement sale agreement (TSA) with NQM Gold 2 to acquire 100 per cent of the Twin Hills Gold Project.
NQM Gold 2 is a wholly-owned subsidiary of Minjar Gold which is a wholly-owned subsidiary of Jinan High-Tech Development Co who is listed on the Shanghai Exchange.
Total cash consideration for the acquisition is $2 million along with financial assurance of $1.48 million.
The acquisition is subject to indicative approval under the Mineral Resources Act 1989 and third-party consent.
CEO and Managing Director Peter Rohner says this acquisition marks a significant step in GBM’s strategy of becoming a notable gold company.
“This transformational transaction represents a significant step in the execution of our ‘processing halo’ strategy to build over two million ounces under ownership within the Drummond Basin, providing an entry into the development of a genuine mid-tier Australian gold company,” Mr Rohner said.
“We look forward to completing the transaction and commencing an aggressive initial extensional and infill drilling program at Twin Hills over the next year.”
The Twin Hills Gold Project is located in the Drummond Basin in Queensland which hosts a number of significant gold deposits.
It is considered highly prospective for gold mineralisation with initial analysis suggesting high-grade gold shoots at the 309 and Lone Sister deposits may be open at depth.
Both deposits have a combined JORC 2012 mineral resource estimate of 6.9 million tonnes at 2.8 grams of gold per tonne.
Additionally, both have previously intersected significant gold, demonstrating potential for bonanza gold grades and broad intersections.
GBM was up 10.7 per cent with shares trading at 15.5 cents at 11:26 am AEST.