GBM Resources, an ASX-listed mining company, has signed a farm-in agreement with Wise Walkers to earn up to a 70% joint venture interest in the Twin Hills Gold Project in Queensland.
The deal is contingent on securing shareholder approval and the decision of Newmont to exercise or waive its right of first refusal.
Wise Walkers has already provided GBM with A$1m ($668,972), and an additional A$2m ($1.3m) has been secured in the company’s solicitor’s trust account.
The remaining A$3m is expected to be paid once all conditions precedent are met.
Upon completion of these payments, GBM Resources will receive a total of $6m cash from Wise Walkers to earn the 70% interest.
GBM will maintain a 30% interest in the project, which will be free carried until a decision to mine is made.
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By GlobalData
Twin Hills property spans 1,102km² in the Drummond Basin, known for its high prospectivity.
The site boasts a combined resource estimate of 23.11Mt at 1.3g/t gold and 6.5g/t silver, yielding approximately 992,000 ounces of gold and 4.82m ounces of silver.
Historical drilling at Twin Hills is claimed to have returned long and high grade intersections, including 140.6 metres (m) at 5.2 g/t gold from 154m and 146m at 9.8 g/t gold from 104m (Lone Sister).
GBM managing director and CEO, Peter Rohner said: “GBM’s focus continues to be on the prospective Drummond Basin where large high grade epithermal gold deposits exist and where it has expanded JORC resources to approximately1.84 Moz of gold.
“This Farm-in agreement and the agreement with Newmont on the Mount Coolon Project, provides funding and support to advance these two large prospective tenement packages. The sale component of this agreement provides the necessary funding to repay the Convertible Note when completed. GBM will now focus on advancing the Yandan Gold Project.
In June 2024, GBM Resources announced a conditional term sheet for the sale of its White Dam gold-copper heap leach project in Australia to Olary Gold Mines.
