Companies:

 

Articles:

 
Mining

GBM Resources launches $13m raising and overhauls board in strategic exploration push

Go to Colin Hay author's page
By Colin Hay - 
GBM Resources ASX GBZ Placement Advance Drummond Basin Gold Assets
Copied

Queensland-based GBM Resources (ASX: GBZ) is set to ramp up its exploration activities with a $13 million capital raising.

The company has received firm commitments to bring in new funds via a two-tranche placement at $0.006 per share.

At the same time, GBM has announced a substantial board restructure to help put its future strategy into action.

Convertible notes cancelled

GBM will use proceeds from the raising to repay and cancel the $6.2m in existing convertible notes currently held by Collins St Asset Management.

The company also plans to undertake further exploration at Yandan and to drill across the Lone Sister and 309 deposits at Twin Hills.

GBM is currently preparing to relog historical core and undertake regional soil surveys and mapping at the two prospects.

Experienced board additions

GBM has announced the addition of former Normandy Mining Group senior group executive Ian Middlemas as the new chair and the appointments of Robert Behets and Peter Fox as non-executive directors.

Mr Middlemas has subscribed for $1.2m in GBM shares under the placement, with Mr Behets and Mr Fox taking up a combined $540,000 worth.

Peter Rohner will step down as managing director, although he will remain as chief executive officer until his contract expires on 31 July 2025 and then transition to a consultancy role with the company.

“On behalf of GBM, I thank Peter Rohner for his vision and efforts to consolidate and secure some of the most prospective gold ground in Australia and welcome the support from Ian Middlemas,” executive director Andrew Krelle said.

Farm-in terminated

GBM has also reached an agreement with Wise Walkers Ltd (WWL) to terminate a proposed Twin Hills farm-in agreement, reconsolidating GBM’s full ownership of the asset.

WWL has committed to subscribe for $2m under the placement and will also convert $2m it previously spent under the farm-in into equity, resulting in a 19.99% shareholding in GBM.

“With a strong debt-free balance sheet, GBM now has a great opportunity to deliver value to shareholders through an accelerated exploration program across Twin Hills and Yandan,” Mr Krelle added.