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  • GBM Resources (GBZ) is progressing the sale of its Mayfield project, in north-west Queensland, to copper explorer C29 Metals (C29)
  • C29 has exercised its option to acquire a 100 per cent interest in the copper project which it says complements its core projects
  • C29 Metals made an initial $40,000 payment and will have to pay $210,000 in cash within the next 15 days as well as issue $250,000 worth of shares to have the project transferred
  • As stated when the deal was signed in February, GBM Resources’ focus is on the Drummond Basin in north Queensland where there are large, high-grade epithermal gold deposit
  • GBZ shares are up 2.6 per cent and last traded at 7.9 cents per share while C29 shares are trading grey at 17 cents at 10:04 am AEST

GBM Resources (GBZ) has announced C29 Metals (C29) has exercised its option to buy the Mayfield project in northwest Queensland.

The ASX-listed companies signed an agreement in February which gave C29 Metals the exclusive option to purchase 100 per cent of GBM’s Mayfield project.

To do this, C29 Metals had to conduct due diligence on the project, pay an initial option fee of $20,000 and a second $20,000 payment when the exploration licence is renewed. Both payments have now been satisfied.

Now that C29 has exercised the option, it will pay $210,000 in cash within the next 15 days to transfer the tenement. It will also issue GBM or a nominee $250,000 worth of C29 shares which will be based on a seven-day volume-weighted average price.

The option is now unconditional and the project will be transferred to C29 Metals once the payments have been made and the QLD Department of Resources gives its approval.

The Mayfield Copper Project lies within the eastern fold belt of the Proterozoic Mount Isa Inlier. It can be found 25 kilometres from Carnaby Resources’ (CNB) Nil Desperandum and Lady Fanny projects and is less than 50 kilometres from Hammer Metals’ (HMX) Kalman deposit.

C29 Metals Executive Director Mark Major said the Mayfield project complements the company’s core projects and provides the opportunity to further expand its copper-gold inventory.

“We have a good opportunity to find substantial mineralisation and look forward to getting stuck into the exploration after settlement,” Mr Major said.

As stated when the deal was signed in February, GBM Resources’ focus is on the Drummond Basin in north Queensland where there are large, high-grade epithermal gold deposits.

GBM Managing Director and CEO Peter Rohner said the company is pleased to progress the sale of the Mayfield project to C29 Metals.

“Taking some consideration in C29 Metals shares shows GBM’s support for the Mayfield project and the prospectivity of the tenement, particularly following recent exploration success by Carnaby Resources to the north,” Mr Rohner said.

GBZ shares were up 2.6 per cent and last traded at 7.9 cents per share while C29 shares were trading grey at 17 cents at 10:04 am AEST.

GBZ by the numbers
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