GBM Raises $13M, Repays $6.2M Debt, and Welcomes Wise Walkers as 20% Investor

Strategic Capital Raise and Debt Repayment

GBM Resources Limited (ASX, GBZ) has announced a successful capital raise of A$13 million through a two-tranche placement aimed at funding exploration activities across its Drummond Basin gold portfolio. The first tranche, raising approximately A$1.5 million, has been completed, while the second tranche, worth around A$11.5 million, awaits shareholder approval scheduled for early August 2025.

This capital injection will enable GBM to fully repay its outstanding convertible notes held by Collin St Asset Management, amounting to about A$6.2 million. The repayment will clear the company's debt, positioning GBM with a clean balance sheet to pursue its exploration ambitions.

Board Restructure Brings New Expertise

Alongside the funding announcement, GBM has completed a significant board restructure. Ian Middlemas has been appointed as Non-Executive Chairman, joined by Robert Behets and Peter Fox as Non-Executive Directors. Executive Director Andrew Krelle remains in his role, while former Chairman Sunny Loh transitions to a Non-Executive Director position. This refreshed leadership team brings extensive experience and networks, signaling a strategic shift to support GBM’s growth objectives. The company is also in the process of recruiting an experienced CEO to complement the board’s capabilities.

Wise Walkers Farm-in Terminated, Becomes Cornerstone Investor

GBM has formally terminated the Wise Walkers Limited farm-in agreement over the Twin Hills gold project. Wise Walkers has converted its prior A$2 million farm-in expenditure into equity at the placement price, acquiring approximately 333 million shares. Additionally, Wise Walkers has subscribed for a further A$2 million in shares, becoming GBM’s largest shareholder with a 19.99% stake post-placement. This strategic alignment underscores Wise Walkers’ confidence in GBM’s vision to develop the Drummond Basin portfolio.

Exploration and Asset Sales Progress

GBM’s Drummond Basin assets, including Twin Hills and Yandan, collectively host JORC-compliant gold resources of approximately 1.84 million ounces. Exploration activities are advancing with geophysical reinterpretation and drill target planning underway. Meanwhile, the company continues to progress the sale of non-core assets. Notably, the Mount Morgan asset sale reached a milestone with the receipt of A$400,000 following the transfer of a 51% interest to Lithium Energy Limited. The White Dam and Cloncurry asset sales processes remain ongoing.

Separately, Newmont has resumed exploration activities at the Mount Coolon Project under a farm-in agreement, with drilling and rehabilitation works progressing as planned.

Outlook for GBM Resources

With a strengthened balance sheet, a revitalised board, and a committed cornerstone investor, GBM Resources is well-positioned to accelerate its exploration programs in 2025. The company aims to expand its resource base and transition into a mid-tier Australian gold producer, leveraging its extensive tenure across the Drummond Basin and other strategic projects.