GBM Resources Limited (ASX:GBZ) Announces $13 Million Placement and Board Restructure
Placement Details
GBM Resources Limited (ASX: GBZ) has secured A$13 million through a two-tranche placement, issuing up to 2,166,666,667 fully paid ordinary shares at A$0.006 each. The funds will be utilized to repay A$6.2 million in existing convertible notes, supporting an accelerated exploration program across its Drummond Basin portfolio, which hosts 1.84 million ounces of gold.
Board Restructure
Ian Middlemas will join as Non-Executive Chairman, subscribing A$1.2 million under the placement and becoming a major shareholder. Robert Behets and Peter Fox are appointed as Non-Executive Directors. Sunny Loh transitions from Chairman to Non-Executive Director, while Peter Rohner steps down as Managing Director but remains CEO until July 2025 before becoming a consultant.
Wise Walkers Investment
Wise Walkers Ltd (WWL) has agreed to subscribe for an additional A$2 million and convert previously spent A$2 million into equity, resulting in a 19.99% shareholding. WWL will also have the option to nominate a board member post-placement.
Use of Proceeds
The A$13 million will be allocated to repay convertible notes (A$6.2M), explore at Yandan and Twin Hills (A$1.7M), conduct drilling at Twin Hills (A$3M), undertake relogging and surveys (A$0.5M), and cover working capital needs (A$1.6M).
Executive Comments
Executive Director Andrew Krelle stated, “With a strong debt-free balance sheet, GBM now has a great opportunity to deliver value to shareholders through an accelerated exploration program across Twin Hills and Yandan. GBM’s exploration plan for the next 12 months is designed to expand the significant gold resource base at Twin Hills and Yandan by systematically exploring for epithermal gold mineralisation across GBM’s Drummond Basin projects.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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