GBM Raises $13M, Repays $6.2M Debt, and Regains Full Twin Hills Ownership
GBM Resources secures $13 million through a strategic placement, repays $6.2 million in debt, and restructures its board to accelerate exploration in the Drummond Basin. The company also regains full ownership of the Twin Hills gold asset, positioning itself for growth.
- A$13 million placement to new and existing investors
- Full repayment and cancellation of $6.2 million convertible notes
- Board reshuffle with Ian Middlemas appointed Chairman
- Termination of Wise Walkers farm-in agreement, regaining 100% Twin Hills ownership
- Wise Walkers becomes largest shareholder with 19.99% stake
Strategic Capital Raise and Debt Repayment
GBM Resources Limited (ASX – GBZ) has announced a significant capital raise of A$13 million through a two-tranche placement aimed at strengthening its balance sheet and funding exploration activities. The proceeds will be partly used to fully repay and cancel $6.2 million in convertible notes held by Collins St Asset Management, effectively eliminating the company's debt burden. This move clears the way for GBM to focus on advancing its gold projects without the constraints of outstanding liabilities.
Board Restructure Brings New Expertise
The placement coincides with a notable board reshuffle. Ian Middlemas, a seasoned mining executive with extensive experience at Normandy Mining and other listed resource companies, will assume the role of Non-Executive Chairman. Alongside him, Robert Behets and Peter Fox join as Non-Executive Directors, bringing a blend of geological, corporate, and capital markets expertise. Existing Chairman Sunny Loh transitions to a Non-Executive Director role, while Managing Director Peter Rohner steps down but will remain CEO until July 2025 to ensure a smooth leadership transition. Executive Director Andrew Krelle continues in his role, providing continuity.
Regaining Full Control of Twin Hills
GBM has terminated its previously proposed farm-in agreement with Wise Walkers Ltd over the Twin Hills gold project, thereby reconsolidating full ownership of this highly prospective asset. Wise Walkers, which had invested $2 million under the farm-in, will convert this amount into equity and subscribe for an additional $2 million in shares, becoming GBM's largest shareholder with a 19.99% stake. This strategic partnership aligns interests while allowing GBM to fully control exploration and development decisions at Twin Hills.
Well-Funded to Accelerate Exploration
With a debt-free balance sheet and fresh capital, GBM is positioned to accelerate its exploration program across its 100% owned Drummond Basin portfolio, including the Twin Hills and Yandan projects. These assets collectively host JORC-compliant gold resources of approximately 1.84 million ounces. The company plans systematic drilling, soil surveys, and mapping to expand its resource base and unlock the district-scale potential of the region. This exploration push aims to transition GBM into a mid-tier Australian gold producer.
Looking Ahead
GBM’s recapitalisation and board renewal mark a pivotal moment in its growth trajectory. The involvement of Wise Walkers as a major shareholder and board nominee adds a new dynamic to governance and strategic direction. Meanwhile, the company’s focus on exploration in a prolific gold province could deliver significant value if drilling results meet expectations. Investors will be watching closely as GBM embarks on this next phase of development.
Bottom Line?
GBM’s fresh capital and leadership overhaul set the stage for an intensified exploration campaign that could redefine its standing in the Australian gold sector.
Questions in the middle?
- How will Wise Walkers’ board representation influence GBM’s strategic decisions?
- What are the expected timelines and milestones for the upcoming exploration programs at Twin Hills and Yandan?
- Could further capital raises be necessary if exploration results prompt accelerated development?
