GBM Resources has completed its acquisition of the Yandan gold project from copper-gold producer Aeris Resources.
Aeris receives $3 million in GBM shares (at $0.135 per share) and a 1.5 per cent Net Smelter Royalty on the first 300,000 oz of gold equivalent mined from the Yandan tenements.
The company has also subscribed for a placement of $1 million of shares in GBM at $0.135 per share.
Following the issue of the shares to Aeris, the company will hold a 6.85 per cent stake in GBM.
The Yandan gold project is located about 40km west of GBM’s flagship Mount Coolon gold project and 155km south-east of Charters Towers, North Queensland.
The company has recently highlighted its intention to build a 1 million-oz-plus resource base within a 70km radius of Mount Coolon that may be able to be fast-tracked to production.
The Yandan project boasts a mineral resource estimate of 8.56 million tonnes grading at 1.5 g/t gold for 401,000 ounces of gold, and includes established mine infrastructure such as power, dams and access to the Suttor River.
Aeris executive chairman Andre Labuschagne said taking an equity position in GBM in exchange for Yandan enabled the company to maintain an exposure to the highly prospective Drummond Basin while it concentrated on its core producing assets.