Aeris Resources Ltd (ASX:AIS) has finalised the sale of the Yandan Gold Project in Queensland to GBM Resources Limited (ASX:GBZ).
GBM has completed all conditions precedent for the acquisition, has received shareholder approval at the AGM on November 30, 2020, and the completion date is confirmed to occur on January 13, 2021.
The Yandan Project historically produced around 350,000 ounces of gold and the site includes established mine infrastructure such as power, water dams and access to the Suttor River, tailings and previous plant footprint, which is strategically located around 40 kilometres west of GBM’s Mount Coolon in the Drummond Basin.
Acquisition terms
Key terms of the Yandan acquisition include:
- As consideration for the Yandan acquisition, GBM will issue Aeris fully paid ordinary shares to the value of A$3 million (22.22 million shares at the initial share price of 13.5 cents);
- GBM will grant to Aeris a 1.5% Net Smelter Royalty (NSR) on the first 300,000 ounces of gold equivalent produced from ML1095, ML1096 and EPM8257 (this NSR will be registered as security over the project’s mining and exploration licences); and
- Aeris will also subscribe to a placement of A$1 million of fully paid ordinary shares in the capital of GBM, at the same share price which is now confirmed.
Mt Coolon/Yandan Gold Project location and new tenement applications (blue outlines).
Resource growth potential
The combined mineral resource estimate for the Yandan Gold Project and the Mt Coolon Gold Project now totals 28.2 million tonnes at 0.9 g/t gold for 852,000 ounces.
This is a key step in GBM's 'processing halo' strategy to build more than 1 million ounces within the Mt Coolon region, providing an entry to develop into a mid-tier Australian gold company.
GBM has now completed a detailed review of the geology and exploration potential of Yandan and considers the potential for additional discoveries and resource growth is high.
Exploration at the Yandan Project in 2021 will focus on infill drilling between the Main Pit and East Hill deposits to expand resources, upgrade the existing non-compliant resource at the IIlamahta prospect and review Northeast Ridge for oxide resources.