- GBM Resources (GBZ) secures a funding package to support exploration and development activities at its Drummond Basin tenements in Queensland
- This package includes a notes raise to issue Collins Street Convertible Note Fund up to $10 million worth of convertible notes
- Each note attracts a 10.5 per cent interest rate, has a conversion price of 8.75 cents and will be split into two tranches with the second subject to shareholder approval
- GBM is also raising $305,000 through a placement to investors at five cents per share
- Company shares are down 8.77 per cent to trade at 5.2 cents at 2:04 pm AEST
GBM Resources (GBZ) has entered a funding package to continue exploration and development activities at its Drummond Basin tenements in Queensland.
The package consists of a note raise under which GBM will issue up to $10 million worth of convertible notes to the Collins Street Convertible Note Fund which is managed by Collins Street Asset Management in Melbourne.
Each note attracts a 10.5 per cent interest rate and has a conversion price of 8.75 cents. The notes have a three-year term and will be issued in two tranches with the second subject to shareholder approval.
GBM expects the first note will settle later this month and shareholder approval for the second note will be sought at the annual general meeting in November.
In addition, GBM Resources received firm commitments to raise $305,000 through a share placement.
Roughly 6.1 million shares will be issued to institutional and sophisticated investors at five cents each which represents a 12.3 per cent discount to the last closing price on September 6 of 5.7 cents.
“This funding package, along with receivables and liquid securities provides GBM sufficient funds to continue to advance its flagship Drummond Basin gold project,” GBM Managing Director and CEO Peter Rohner said.
The company will use the funds for drilling and resource expansion at Twin Hills, advance mineral resource estimates for Yandan, Illamahta and Twin Hills, and initial feasibility work to assess resource extraction options at Twin Hills.
GBZ shares were down 8.77 per cent to trade at 5.2 cents at 2:04 pm AEST.