GBM Gold Receives $2.75 Million Strategic Investment
- Investor subscribing to 275,000,000 ordinary shares at $0.01 per share for a private placement of $2.75 million
- Funds will be used for the advancement of the Kangaroo Flat Sand Dam and Harvest Home projects and the third deferred bond payment to Unity Mining
- Receipt of funds to be completed by 8 October 2018
GBM Gold Limited has announced that it has secured a cornerstone investment of $2.75 million with the funds from the private placement to be used in the progression of the Kangaroo Flat Sand Dam Project, Harvest Home Project and for the third deferred bond payment to Unity Mining for the Kangaroo Flat assets.
The $2.75 million placement comprises the issue of 275,000,000 ordinary shares at the issue price of $0.01 per share.
GBM Gold will use the proceeds of the placement for the following Company activities:
Kangaroo Flat Sand Dam Project (MIN5344)
As announced GBM Gold’s September 2017 Quarterly Report, GBM Gold entered into an agreement with Gold Miners Australia to jointly mine and process the sand in the Kangaroo Flat Coarse Sand Dam to recover the contained gold and sulphides. A wash plant and 2x35tph gold concentrators have been installed and commissioned.
The sand dam is estimated to hold 430,000 tonnes of material containing 5,100 ounces of gold at a grade of 0.37 g/t as reported in the March 2017 Quarterly Report. It is planned to process the sand over a period of two to three years.
Harvest Home Project (MIN5510)
The Harvest Home Project is located approximately 5 kilometres north of Dunolly in central Victoria. The tenement encompasses the historic Harvest Home Goldfield. MIN5510 is a 50% Joint Venture with Truelight Mining Pty Ltd.
A bulk-sampling test pit was completed at the Harvest Home prospect in June 2015. A quantity of gold was recovered from ore mined from the shear zone exposed in the test pit. In addition to the gold obtained from the shear, coarse gold was observed where a flat dipping quartz vein intersected a sub-vertical “indicator” fault adjacent to the mined shear. Knowledge gained from bulk-sampling of the deposit promoted a review of the mineralisation model and a re-evaluation of the resource potential of the project.
The approvals processes for the development of a production pit that will encompass and extend the existing bulk sample pit are complete. Approximately 44,000 tonnes of ore at an estimated grade of 2.46g/t will be excavated in the next phase of the operation. In addition, a selective program of costeaning and in-fill drilling will build resource potential at Harvest Home and other prospects on the tenement. Mining will be conventional drill & blast utilising hydraulic excavator and articulated trucks. Ore will be transferred to an offsite processing facility.