GBM nears completion of gold mine buy

KUALA LUMPUR: Australia-listed GBM Resources Ltd is closer to bedding down the acquisition of a gold mine in Malaysia, following the completion of a technical and legal due diligence.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/gbmandi/Article/
Published: July 17, 2013

In a disclosure to the Australian Securities Exchange, the company said it has executed a formal acquisition and joint-venture agreement with Angka Alamjaya Sdn Bhd (AASB) to recommission the Lubuk Mandi gold mine in Terengganu.

GBM announced on June 11 that it had entered into a binding term sheet to undertake a share swap with AASB.

Under the terms of the agreement, GBM and AASB will undertake a share swap, in which the former will acquire about 40 per cent of AASB by issuing 15 per cent of ordinary shares in GBM, subject to shareholder approval at the company's shareholders' meeting on Monday.


Apart from GBM shareholders' approval, the remaining conditions on the agreement include procuring project funding of up to S$6 million (RM15.17 million) for AASB.

It was also noted that the GBM board has approved the transaction to prepare for an ongoing plan to develop the Lubuk Mandi gold mine and recommence mining operations.

The exploration target for the project is estimated to contain between 174,000 and 443,000 ounces of gold, with the development plan to focus on the retreatment of the tailings dam, followed by the recommencement of hard rock mining.

Both parties have also agreed that following the completion of the share swap, further exploration and development of the tailings dam on the Lubuk Mandi gold mine, satisfaction of any regulatory requirements and market conditions, the parties intend to complete an initial public offering of AASB shares on the Singapore Stock Exchange.

GBM managing director Peter Thompson was quoted as saying in a previous statement that the company's strategy is well supported by its major Singaporean shareholders and is in line with its business objective of delivering shareholder value via project generation.

The Lubuk Mandi gold mine, which, in the 1990s, was owned and operated by Terengganu State Economic Development, produced 108,000 ounces of gold from two shallow pits.