GBM Resources raises $26m for Drummond Basin gold exploration

Core Viewpoint - GBM Resources has successfully raised A$39.85 million (approximately $26.14 million) through an institutional placement to accelerate exploration and development in its Drummond Basin gold portfolio in Queensland [1][3]. Fundraising Details - The placement involves issuing approximately 752 million new shares at A$0.053 each, which represents a 3.6% discount to GBM's last closing price and a 4.7% discount to its ten-day volume-weighted average price [2]. - Canaccord Genuity (Australia) acted as the lead manager and bookrunner, with Argonaut Securities co-leading the placement [2]. Use of Proceeds - Proceeds from the placement, along with existing cash reserves, will be allocated to enhance exploration and development activities at GBM's 100%-owned Drummond Basin assets, which contain mineral resources of around 1.84 million ounces [3]. - The funds will also support business development initiatives and general working capital [3]. Capital Raising Structure - The capital raising will occur in two tranches: the first tranche involves 600 million shares issued under existing placement capacity, while the second tranche consists of 151.9 million shares to Wise Walkers, pending shareholder approval [4]. - GBM CEO Daniel Hastings expressed satisfaction with the positive response to the placement and emphasized the importance of strengthening the balance sheet to support growth in existing resources and systematic exploration [4].