GBM sells non-core asset as it continues focus on Drummond Basin gold
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GBM has sold the Brightlands Milo project in Queensland as part of its ongoing divestment of non-core assets to focus on gold exploration in the Drummond Basin.
The sale of the IOCG, uranium and rare earths project to Canada’s Consolidated Uranium had previously netted the company C$500,000 ($539,493) back in November 2021 when the definitive agreement was signed.
GBM Resources (ASX:GBZ) has now received the completion payment of 750,000 Consolidation Uranium shares worth about $2.1m, giving it exposure to a strong uranium company and any upside from Brightlands Milo.
“GBM’s focus continues to be on the prospective Drummond Basin where large high grade epithermal gold deposits exist and where GBM has assembled a large tenement position and a JORC resource of ~1.6 Moz of gold,” managing director Peter Rohner said.
“We are pleased to have completed the sale of the Brightlands Milo Project to Consolidated Uranium Inc. and realise additional value for GBM’s shareholders with this shareholding.”
Besides the large existing resource, recent drilling at the Twin Hills project has returned thick gold intersections that further underscore why the company is so keen to focus on the Drummond Basin.
The company is currently in the process of selling its Mt Morgan gold-copper project to Smartset Services for 20,079,545 Smartset shares, giving it a 47.5% stake in the Canadian company prior to its C$8m equity raising.
Smartset will also repay GBM any amount it expands on obtaining native title and landholder access and compensation agreements, and on exploration expenditures, for Mt Morgan between the date of the signing of the LOI until transaction completion (to a maximum of C$250,000).
This article was developed in collaboration with GBM Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.