Shareholder Approval Key as GBM Raises A$40M for Drummond Basin Growth
GBM Resources has raised nearly A$40 million through a major institutional placement led by its largest shareholder, Wise Walkers Limited, to fund exploration and development in Queensland’s Drummond Basin gold projects.
- Approximately 752 million new shares issued at A$0.053 each
- Placement led by major shareholder Wise Walkers Limited with A$8.05 million commitment
- Funds aimed at advancing exploration and development of 1.84 million ounces gold resource
- Placement to be completed in two tranches, second tranche subject to shareholder approval
- Strengthened and diversified shareholder base with new and existing institutional investors
Capital Raise to Fuel Growth
GBM Resources Limited (ASX – GBZ) has successfully secured approximately A$39.85 million through an institutional placement of around 752 million new shares priced at A$0.053 each. This capital raise, announced on 9 October 2025, is designed to bolster the company’s balance sheet and accelerate exploration and development activities within its substantial Drummond Basin gold portfolio in Queensland.
The placement was notably led by Wise Walkers Limited, GBM’s largest shareholder, who committed A$8.05 million, signaling strong insider confidence in the company’s strategic direction. Alongside Wise Walkers, a mix of existing and new domestic and offshore institutional investors participated, broadening and strengthening GBM’s shareholder base.
Strategic Focus on Drummond Basin
The Drummond Basin projects, including flagship assets Twin Hills, Yandan, and Mt Coolon, collectively host a mineral resource of approximately 1.84 million ounces of gold. GBM’s CEO Daniel Hastings emphasized that the fresh capital will underpin efforts to expand the existing resource base, particularly at the Twin Hills and Yandan deposits, which together account for about 1.5 million ounces. Moreover, the funds will support systematic exploration of new regional targets, aiming to unlock further value across the portfolio.
The placement price represents a modest discount to recent trading levels, reflecting a balance between raising capital efficiently and maintaining shareholder value. The placement will be executed in two tranches – the first tranche of 600 million shares will be issued shortly under existing listing rules, while the second tranche of approximately 152 million shares, subscribed by Wise Walkers, awaits shareholder approval expected in late November 2025.
Market and Operational Implications
With Canaccord Genuity and Argonaut Securities managing the placement, GBM is well-positioned to deploy the proceeds swiftly. The company’s strengthened financial position should facilitate more aggressive exploration campaigns and potentially expedite development timelines. While no updated production targets or cost guidance were provided, the capital injection signals GBM’s commitment to advancing its Queensland gold assets amid a competitive market environment.
Investors will be watching closely for the outcome of the shareholder meeting approving the second tranche, as well as forthcoming exploration results that could validate the company’s growth ambitions. The diversified investor base and insider participation may also provide some stability to the share price as GBM progresses its projects.
Bottom Line?
GBM’s capital raise sets the stage for an intensified push to grow its gold resources, but the market will await shareholder approval and exploration outcomes to gauge the full impact.
Questions in the middle?
- Will the shareholder meeting approve the second tranche subscription by Wise Walkers?
- How quickly will GBM translate the new capital into exploration success and resource upgrades?
- What impact will the placement have on GBM’s share price and liquidity in the near term?
