GBM Resources is selling its Brightlands Milo project in North-West Queensland to a Canadian company for more than $2 million in cash and shares.

The Iron Oxide Copper-Gold (IOCG) uranium and rare earth elements project includes an inferred resource at Milo of 88 Mt containing 97,000 tonnes of copper and 14 million lbs of uranium oxide at a 0.1 per cent copper equivalent cut-off. 

GBM has executed a non-binding proposal with Consolidated Uranium for the sale.

GBM Resources managing director and chief executive officer Peter Rohner said the company’s focus was on its Drummond Basin gold strategy.

It was pleased to be progressing discussions with Consolidated Uranium to sell the Brightlands Milo Project and realise value for GBM’s shareholders, he said.

Subject to satisfactory due diligence, Consolidated Uranium would pay $CAD500,000 in cash and a minimum of $CAD1.5 million in shares. (The combined equivalent of about $AU2.163 million).

GBM Resources this week announced that it was raising $7 million in a share placement to drive its Drummond Basin gold development forward.

The company said funds raised would be used to fund drilling programs in the Drummond Basin as well as covering the Twin Hills acquisition and to provide working capital.

In addition, directors Peter Mullens and Peter Rohner have indicated that, subject to shareholder approval, they intend to subscribe for 1,000,000 and 3,000,000 shares respectively to raise a further $400,000 – taking the total raising to $7.4 million before issue costs.

GBM is acquiring the Twin Hills project for $2 million from a subsidiary of Pajingo mine owner Minjar Gold as it continues its ‘processing halo’ strategy to build an asset portfolio with more than two million ounces of gold within the Drummond Basin. (See below)