Convertible Debt Falls as GBM Ramps Up Twin Hills and Yandan Exploration in 2025

Strategic Farm-in Deal Bolsters Twin Hills Development

GBM Resources Limited (ASX:GBZ) has secured shareholder approval for a significant $12 million farm-in agreement with Wise Walkers Limited, enabling the latter to earn up to a 70% interest in the Twin Hills Gold Project. This partnership is designed to accelerate exploration and development, with Wise Walkers committing to sole-fund $6 million in exploration over 18 months. GBM retains a 30% free-carried interest to decision to mine and will manage the farm-in exploration program, providing a strong platform for advancing the nearly 1 million ounce gold resource at Twin Hills.

Focused Exploration Strategy Targets High-Grade Zones

During the December quarter, GBM intensified its geological and geophysical review across its Drummond Basin assets, particularly at Yandan and Twin Hills. The company is targeting 'feeder' zones beneath the Yandan Pit, aiming to unlock extensions of the high-grade East Hill resource, which boasts 201,000 ounces at 5.7 g/t gold. At Twin Hills, exploration efforts focus on expanding the 1 million ounce resource at the 309 and Lone Sister deposits, with drilling planned to commence in early 2025. The systematic approach includes geophysical surveys, soil sampling, and 3D modeling to refine targets and improve drilling efficiency.

Mt Coolon Farm-in with Newmont Shows Early Promise

Newmont has completed its minimum expenditure commitment under the $25 million farm-in agreement at Mt Coolon, marking a key milestone in the joint venture. Recent drilling intersected mineralized epithermal veining beneath the Glen Eva prospect, including notable silver and tellurium grades that suggest a complex mineralizing system. An extensive air core drilling program was also completed, with results pending. To date, Newmont has invested approximately $10.6 million, advancing the project through its Stage 1 phase.

White Dam Gold Project Delivers Positive Cash Flow

GBM's White Dam gold project in South Australia contributed materially to the company's cash flow during the quarter, selling approximately 466 ounces of gold and generating around $1.9 million in revenue. This performance reflects increased gold production from heap leach operations and mineralized material recovered from processing circuits. The company is preparing fine carbon stocks for assay and sale in the coming months, with divestment discussions ongoing. The positive cash flow from White Dam strengthens GBM's working capital position heading into 2025.

Corporate Developments and Financial Health

GBM continues to streamline its balance sheet, reducing convertible note debt from $10 million to approximately $6.1 million through repayments funded by asset sales and farm-in proceeds. The company appointed Andrew Krelle as Executive Director and Edward Jelicich-Kane as General Manager - Exploration to lead corporate development and exploration activities respectively. These appointments underscore GBM's commitment to ramping up exploration and delivering consistent news flow from its projects.

Outlook for 2025

With exploration programs set to intensify across the Drummond Basin, including drilling at Twin Hills and Yandan, GBM is positioning itself for a transformative year. The combination of strategic partnerships, disciplined exploration, and operational cash flow from White Dam provides a solid foundation for advancing its gold assets. Investors will be watching closely as GBM seeks to convert its extensive resource base into tangible value.