THE BOURSE WHISPERER: GBM Resources (ASX: GBZ) has ruled a line under the acquisition with Angka Alamjaya Sdn Bhd (AASB) of the Lubuk Mandi gold mine in Peninsular Malaysia.
GBM has struck an acquisition and Joint Venture agreement with AASB, under which it has acquired approximately 40 per cent of AASB by issuing 15 per cent of ordinary shares in GBM.
The two entities have agreed a total budget of up to SDG$8 million to be used for completion of resource estimation programs, metallurgical testing, plant design, capital equipment purchase and plant construction to commence retreatment of tailings.
The total budget also includes IPO provisional costs for listing in Singapore.
Location map of the Lubuk Mandi gold mine. Source: Company announcement
The first Tranche of SDG$ 3million has been secured.
With the completion of the acquisition and the first tranche of funding secured, GBM has commenced exploration drilling on the Lubuk Mandi Tailings Dam.
The parties intend to complete an Initial Public offer of AASB shares on the Singapore Stock Exchange by mid-next year.
“This acquisition is significant as it provides both funding and growth outcomes for GBM,” GBM Resources managing director Peter Thompson said in the company’s announcement to the Australian Securities Exchange.
“The project has a total JORC exploration target estimated to contain between 174,000 and 443,000 ounces of gold with multiple gold discoveries that offer exceptional exploration potential in an established gold mining region.”
The Lubuk Mandi gold mine was previously owned and operated by government body Terengganu State Economic Development.
In the mid-90s it produced 108,000 ounces of gold from two shallow pits.
The associated processing plant is rated at 300,000 tonnes per annum and involves single stage crushing to a stockpile and mill. The mine and processing plant have been on care and maintenance.
GBM has conducted due diligence and developed a business plan to develop the project and recommence mining operations.
The review was based on data provided by the current owners, AASB.
The project has three identified sources of mineralised material that may provide ore for future mining and treatment, for which exploration targets have been estimated.
Tailings Dam – exploration target between 1 million tonnes at 0.7 grams per tonne gold containing 23,000 ounces of gold, and 1.4 million tonnes at 0.9 grams per tonne gold containing 38,000 ounces of gold.
Main Zone – exploration target between 370,000 tonnes averaging 2.9g/t gold containing 35,000 ounces of gold and 1.1 million tonnes averaging 3.6g/t gold containing 127,000 ounces of gold.
East Zone – exploration target between 1.44 million tonnes averaging 2.5g/t gold containing 116,000 ounces of gold and 2.4 million tonnes averaging 3.6g/t gold containing 278,000 ounces of gold.
Total JORC exploration target for the project is estimated to contain between 174,000 and 443,000 ounces of gold.