GBM Resources (ASX:GBZ) gives Twin Hills Gold Project purchase another go

• GBM Resources (GBZ) is having another go at the Twin Hills Gold Project in Queensland after a plan to buy the project fell through almost two years ago
• The junior gold explorer tried to buy the project from current owner Minjar Gold in 2018, but the deal fell through
• Now, GBM and Minjar have re-engaged in discussions over the project in the hope that this time around the purchase will be successful
• The two parties have signed a non-binding deal over the project and will now enter a 30-day due diligence period before a formal sales deal is drafted up
• The Twin Hills purchase is part of GBM’s plan to build what it calls a million-ounce “processing halo” in Queensland
• Managing Director and CEO Peter Rohner says the purchase will take GBM one step closer to becoming a mid-tier Australian gold company
• Shares in GBM Resources closed a neat 8 per cent higher this afternoon at 14 cents per share

GBM Resources (GBZ) is having another go at the Twin Hills Gold Project in Queensland after a plan to buy the project fell through almost two years ago.

The junior gold explorer has signed a new non-binding deal with the current owner of the company, private miner Minjar Gold, to potentially buy the gold project.

GBM will now take on a 30-day due diligence period to review any changes to the technical and environmental status of the project from two years ago. If all goes according to plan, GBM and Minjar will draft a sales deal within the next three months.

GBM originally eyed the project almost three years ago, and the company signed a formal tenement sale agreement (TSA) with Minjar in September 2018.

The deal, however, was subject to certain conditions that Minjar felt were not met. While GBM never shared exactly what these conditions were, the company told investors on May 9, 2019, that Minjar had officially called the deal off.

GBM said it disagreed that any conditions were breached, but the deal was off nonetheless.

Now, GBM and Minjar have re-engaged in discussions over the project. Time will tell if the sale is more successful this time around.

Why the buy?

The Twin Hills purchase is all part of GBM’s plan to build what it calls a million-ounce “processing halo” in Queensland.

Twin Hills lies just 90 kilometres away from GBM’s Mt Cooloon project and has a global resource of 6.94 million tonnes of ore averaging a grade of 2.8 grams per tonne of gold for a neat 633,000 ounces of contained gold.

Should GBM take control of the project and subsequently add this 633,000 ounces to its Queensland portfolio, company Managing Director and CEO Peter Rohner said it will be one step closer to becoming a mid-tier Australian gold company.

“GBM will expedite its fresh due diligence and looks forward to a speedy completion of the binding tenement sale agreement,” Peter said.

“This is another significant step in GBM’s ‘processing halo’ strategy to build over one million ounces within the Mt Coolon region which provides an entry to develop into a mid-tier Australian gold company,” he said.

Shares in GBM Resources closed a neat 8 per cent higher this afternoon at 14 cents per share. The company has a $58.46 million market cap.