- GBM Resources (GBM) is moving closer to concluding its partnership with Novo Resources after executing a formal purchase and joint venture agreement
- Both companies have effectively secured a 50 per cent stake in the project, however, Novo could up its stake to 60 per cent if it fronts $5 million in exploration costs
- The joint venture now hangs on approval from the Foreign Investment Review Board and the Department of Jobs, Precincts and Regions
- It is hoped this approval is received within the March 2021 quarter
- Stage one exploration and sampling is currently underway at Malmsbury
- GBM shares are sitting in the grey, trading at 13.5 cents each
GBM Resources (GBM) is moving closer to concluding its partnership with Novo Resources after executing a formal purchase and joint venture agreement.
Novo has registered its 50 per cent interest in the Malmsbury Gold project in the Victorian Goldfields as part of the joint venture.
To formalise the agreement entirely, the companies require approval from the Foreign Investment Review Board (FIRB) and the Department of Jobs, Precincts and Regions (DJPR).
A company statement indicates this could be finalised within the March 2021 quarter.
GBM entered a farm-in agreement with Novo Resources in September 2020 for a 50 per cent stake in the project. Under the agreement, Novo can up its stake to 60 per cent if it agrees to incur a $5 million exploration expenditure over four years.
Should the JV progress as planned, GM says it could greatly accelerate potential discovery and resource confirmation timeframes at the project.
GBM Managing Director and Chief Executive Officer, Peter Rohner, says the teams have been working well together.
"While finalising the JV, Novo and GBM have continued to accelerate exploration at Malmsbury," he explained.
"The GBM and Novo teams view Malmsbury as one of the most prospective
and underexplored high-grade gold projects in the Victorian Goldfields," he added.
Stage one exploration has run concurrently with the settlement, including orientation soil sampling, mine dump and outcrop rock sampling and historical drill core sampling.
As of 2012, the JORC resource at Malmsbury sits at 104,000 ounce inferred gold.
GBM and Novo say they have commenced planning for the 2021 exploration program with a proposed budget of up to $1.8 million.
GBM shares are sitting in the grey, trading at 13.5 cents each at 3:33 pm AEDT.