On 8 July 2024 GBM Resources Limited (GBM) advised of the proposed sale to Olary of a 100% interest in the issued capital of GBM's 100% owned subsidiary Millstream Resources Pty Ltd (Millstream) and its wholly owned subsidiaries, which hold the White Dam assets and operations. The transaction is subject to a number of conditions precedent, which included Olary securing $2 million in funding. Olary has advised the Company that this condition has now been satisfied and remaining conditions, relating to approvals and consents will be sought, where applicable.
GBM has received from Olary a non-refundable deposit of $50,000 in respect of the period of exclusivity. Consideration for the sale comprises: - $950,000 cash payable prior to 31 July 2024 or a later date as mutually agreed (Completion Date, now extended); - $1,000,000 cash payable 12 months from the Completion Date; - $1,000,000 cash payable 24 months from the Completion Date; and - 1.5% net smelter royalty paid quarterly in arrears for all Au and Ag production at White Dam to a maximum of $2.5 millio
As part of the transaction, Olary will transfer a working capital contribution of a minimum of $200,000 to Millstream on completion. Refer to the ASX announcement dated 8 July 2024 and this announcement for further details regarding the proposed sale transaction including the conditions precedent.
Sevastopol Graphite Sale Key Terms GBM advises that it has entered into an option agreement with GP in respect of the proposed sale of graphite rights on EPM 16398 (as per the area defined in Figure 2 and Table 1 - Appendix 1). GBM owns 100% of the graphite rights. Signing Payment of $50,000 has been received for an exclusive option to purchase the 100% owned Graphite Rights at the Sevastopol project (EPM 16398) on the following terms: 1. Consideration of $150,000 within 12 months of the Commencement Date (or as extended by mutual agreement) (the 'Option Period'). 2. If GP exercises the option, it must execute and grant a 1% net smelter royalty on any Graphite Products extracted from the Specific Graphite Area, in favour of GBM. 3. Further consideration of $1 million on achieving certain milestones, as follows: I. On GP delineating a resource that is at or more than 40 million tonnes, with a contained grade equal to 6% or more of total graphitic carbon, according to the Measured & Indicated category as defined in the JORC Code (Resource), it will make a cash payment of $250,000 to GBM. ('Milestone One'); and II. On GP successfully completing a feasibility study on the resource described above, will result in an additional cash payment of $750,000 to GBM ('Milestone Two').
GBM Managing Director and CEO, Peter Rohner, commented: 'GBM has continued to look to realise value from the sale of non-core assets for GBM's shareholders, with this graphite project that has been inside GBM for many years. GBM's focus continues to be on the prospective Drummond Basin where large high grade epithermal gold deposits exist and where it has expanded JORC resources to ~ 1.84 Moz of gold, including a Farm-in agreement with Newmont on the Mt Coolon Project and the more recent partial sale and Farm-in agreement with Wise Walkers on the Twin Hills Project. GBM will continue to support Olary to finalise the acquisition of the White Dam Project.'
Contact:
Investor
Peter Rohner
Managing Director
+61 (0) 493 239 674
peter.rohner@gbmex.com.au
About GBM Resources
GBM Resources Limited (ASX:GBZ) is a Queensland based mineral exploration and development company focused on the discovery of world-class gold and copper deposits in Eastern Australia. The company has a high calibre project portfolio, hosting district scale mineral systems, located in several premier metallogenic terrains. GBM's flagship project in the Drummond Basin (QLD) holds ~1.84 Moz of gold in JORC resources (Mt Coolon, Yandan and Twin Hills). Some tenements (see Appendix 2) in the Basin are subject to a A$25m farm-in with Newmont. 2024 will see an expanded drilling program which is aiming to define 2-3 Moz and support GBM's transition into a mid-tier Australian gold company. Separately GBM also holds tenements in the Mt Morgan district, in the Mt Isa Inlier in Queensland (JV with Nippon Mining Australia - 56%) and holds a 100% interest in the White Dam Gold-Copper Project in South Australia. Divestment of these non-core assets is in progress
About Olary Gold
Mines Olary Gold Mines was formed in January 2022 as an unlisted public company and owns several historic gold mining tenements in the Olary Region of South Australia. Olary plans to consolidate its existing Olary regional opportunities and expand the toll processing opportunities at the White Dam Project, Olary is engaged in Research and Development for new Gold ore separation technology which will facilitate lower transport and processing costs to and from the White Dam Project
About Graphite Plains Graphite
Plains Pty Ltd is a wholly owned subsidiary of Syndicate Minerals Pty Ltd. Syndicate Minerals Syndicate Minerals Pty Ltd is an exploration company based in Melbourne since 2019 with the focus of acquiring early stage projects in Australia and overseas using the latest exploration methods to explore for the next generation of large mineral deposits. Commodity types include gold, base metals, platinum, silver and critical minerals. Syndicate Minerals is also a shareholder in GBM.
Competent Persons Statement
The Company confirms that it is not aware of any new information or data that materially affects the information included in the respective announcements and all material assumptions and technical parameters underpinning the resource estimates within those announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.
Contact:
E reception@gbmex.com.au
P +61 (0) 493 239 674
gbmr.com.au
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