- GBM Resources (GBZ) signs a farm-in agreement with Newcrest Operations, a subsidiary of Newcrest Mining (NCM), to advance its Mount Coolon Gold Project in Queensland
- Newcrest could acquire up to 75 percent interest in Mount Coulon residential properties by spending $25 million and completing exploration over the next six years
- Upon completion of the Phase One phase, Newcrest and GBM will form a joint venture to conduct exploration, development and mining on the multi-family estates.
- The Farm Inclusion Agreement provides “substantial” potential funding to advance exploration at Mount Coulon while allowing GBM to focus on its Twin Hills and Yandan gold projects
- GBM closes 14.6 percent higher at 4.7 cents
GBM Resources (GBZ) has signed a farm-in agreement with Newcrest Operations, a subsidiary of Newcrest Mining (NCM), to advance its Mount Coolon Gold Project in Queensland
Under the agreement, Newcrest can acquire a stake of up to 75 percent in the Mount Coulomb residential properties by spending $25 million and completing exploration phases over the next six years.
Over the next 24 months, Newcrest must spend $2 million and seek to complete at least 3,000 meters of drilling in the area to meet its minimum farm obligations.
In the first phase of the deal, Newcrest can acquire a 51 percent stake in Mount Coulomb, spending another $5 million and completing an additional 7,000 meters of drilling within 36 months.
When Newcrest completes the first phase, it will form a joint venture with GBM to conduct residential exploration, development and mining.
Once the first phase is complete, Newcrest can earn an additional 24 percent by spending $18 million and drilling another 10,000 meters over an additional 36 months.
“Over the past three years, GBM has assembled a very promising multi-family package in the Drummond Basin, home to large high-grade epithermal gold deposits, and we are delighted to be joining forces with Newcrest to advance research in the basin and access to funding. and geological expertise in epithermal systems,” said GBM CEO and Managing Director Peter Rohner.
“In the short-term, GBM will continue to focus its exploration on the highly promising Twin Hills multifamily package and advance work to re-evaluate the resource following the recent initial drilling program.”
GBM said the Newcrest farm provided the potential for “substantial” funding to advance exploration at Mount Coulon, allowing GBM is focusing on its Twin Hills and Yandan Gold projects.
In addition, subject to shareholder approval, Newcrest will have the right of first refusal on the Twin Hills and Yandan projects if GBM decides to sell them or form a joint venture.
“We are delighted to be working with GBM on their residential property at Mount Coulon in Queensland,” said Newcrest General Manager Exploration Fraser McCorquodale.
“The Drummond Basin has a storied history of hosting high-quality epithermal mines, and we look forward to leveraging the expertise of both teams to accelerate the exploration program at Mount Coulon to support discovery potential.”
GBM shares closed up 14.6 percent at 4.7 cents.