- GBM Resources (GBZ) sells its remaining 50 per cent interest in the Malmsbury gold project within the Victorian Goldfields
- The company will receive $1 million from TSX-listed Novo Resources as part of the deal, plus the issue of more than four million Novo shares and over two million options to GBM
- Novo initially acquired its 50 per cent interest for roughly $3.7 million back in May 2021
- GBM says it will still have exposure to the project through its share and option holding in Novo, along with its 2.5 per cent net smelter returns royalty
- GBM Resources’ shares are trading at 3.5 cents at 10:20 am AEDT
GBM Resources (GBM) has agreed to sell its remaining 50 per cent interest in the Malmsbury gold project within the Victorian Goldfields.
The company signed a sale and purchase agreement (SPA) with TSX-listed Novo Resources.
The sale includes a cash consideration of $1 million, as well as the issue of 4,037,872 Novo shares and 2,018,936 options to GBM.
GBM Managing Director and CEO Peter Rohner said despite the encouraging signs at Malmsbury, the company’s focus has shifted towards its Drummond Basin strategy.
“While both Novo and GBM have been encouraged by the success to date, GBM’s focus is on the prospective Drummond Basin where large high-grade epithermal gold deposits exist and where it has expanded JORC resources to around 1.85 million ounces of gold,” he said.
The Drummond Basin is considered one of the most prolific gold provinces in Queensland, having produced more than 4.5 million ounces of gold.
Novo acquired 50 per cent interest in Malmsbury for around $3.7 million back in May 2021.
GBM confirmed it will continue to have exposure to the project through its share and option holding in Novo, along with its 2.5 per cent net smelter returns royalty in place.
GBM Resources’ shares were trading at 3.5 cents at 10:20 am AEDT.