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- GBM Resources (GBZ) calls a two-day trading halt as it gears up to tap investors for some fresh capital
- The details of the capital raise are yet to be announced, so it’s currently uncertain how much GBM plans to raise
- The company had roughly $5.7 million worth of cash in the bank at the end of June, before it announced its $2 million purchase of the Twin Hills gold project
- Whether the upcoming capital raise is a simple balance sheet booster to fund GBM’s exploration work or if something bigger is on the way is not yet known
- Shares in GBM Resources last traded for 11 cents each on Friday, September 10
Gold explorer GBM Resources (GBZ) has called a two-day trading halt as it gears up to tap investors for some fresh capital.
The company told the ASX this morning it plans to keep shares frozen until Wednesday, September 15, or until it releases an announcement in relation to a proposed capital raising — whichever comes first.
So far, no details of the capital raise have been announced, meaning it’s unsure how much GBM plans to raise and how it will go about raising the funds.
Taking a look at GBM’s latest quarterly financial report, the company ended June with around $5.7 million worth of cash in the bank.
This was before it announced the planned $2 million purchase of the Twin Hills gold project, which also came with a $1.48 million financial assurance in respect to the environmental authorities for the tenements in question.
Earlier this month, GBM highlighted its strong focus on exploration work at its assets in Queensland’s Drummond Basin region, which now includes the Mount Coolon, Yandan, and Twin Hills projects.
All up, GBM holds around 3500sqkm of land in the region, with another 686sqkm under application. GBM said the Drummon Basin region had an estimated 1.5 million ounces in gold resources.
The company has recently completed a drilling program at Yandan, while drilling at Mt Coolon is currently underway and drilling at Twin Hills is slated for once the acquisition has been completed in October 2021.
Whether the upcoming capital raise is a simple balance sheet booster to fund the exploration work or if something bigger is on the way for GBM is not yet known.
Shares in GBM Resources last traded for 11 cents each on Friday, September 10. The company has a $48 million market cap.
