- GBM Resources (GBZ) has launched a non-renounceable entitlement offer to raise up to $3 million
- If the offer is fully subscribed, GBM will issue over 56.2 million new shares and 28.1 million new options
- The company will use the funds for various exploration and drilling activities at a number of its projects in eastern Australia
- GBM is up a healthy 20 per cent and shares are trading for 7.8 cents each
GBM Resources (GBZ) will undertake a non-renounceable pro-rata entitlement offer of shares and options to eligible shareholders to raise $3 million.
The offer is on the basis of one fully paid ordinary share for every four existing shares held at the record date at a subscription price of $0.055 each.
Additionally, for each two new shares applied, GBM will issue one free attaching option to acquire a new share exercisable at $0.11 each. This option will expire 36 months from the issue date.
The entitlement offer will include a shortfall facility under which eligible shareholders who take up their full entitlement can apply for additional shares in the entitlement offer.
GBM Resources will use the funds to advance exploration activities at its projects.
Specifically, GBM is planning drilling at several prospects within the Mount Coolon Project in Queensland, geological mapping and sampling to assist with targeting drill holes at the Malmsbury Project, and finalising sulphidisation, acidification, recycling and thickening (SART) plant construction at the White Dam joint venture project.
The company will also use the money to search for a joint venture partner and to further develop its Mount Morgan Project in northern Queensland. Furthermore, GBM will put the money towards covering entitlement offer costs and working capital.
“This offer will complete our funding initiatives for the foreseeable future and allow accelerated progress on our key projects of Mount Coolon and Malmsbury,” Managing Director and CEO Peter Rohner said.
If the offer is fully subscribed, the company will issue up to 56,259,534 new shares and 28,129,767 new options to raise up to $3,094,274.
Following this raise, GBM believes it will be financially equipped through to 2021.
GBM is up a healthy 20 per cent and shares are trading for 7.8 cents each at 3:47 pm AEST.