$40 MILLION INSTITUTIONAL PLACEMENT TO DRIVE DRUMMOND BASIN GROWTH
$40m Institutional Placement To Drive Drummond Basin Growth
Brisbane, Oct 9, 2025 AEST (ABN Newswire) - GBM Resources Limited (
ASX:GBZ) (36G:FRA) (GBMRF:OTCMKTS) is pleased to announce that it has successfully secured commitments from both new and existing domestic and offshore institutional and sophisticated investors to subscribe for approx. 752 million new fully paid ordinary shares ("New Shares") to raise gross proceeds of A$39.85m before costs ("Placement").
The Placement was led by the Company's largest shareholder, Wise Walkers Limited ("WWL"), who subject to shareholder approval, have subscribed for A$8.05 million of the Placement, confirming their support for the Company and its 100%-owned Drummond Basin gold assets in Queensland, which hosts Mineral Resources of ~1.84Moz.
Significant support was also received from existing investors, alongside new institutional investors which has further strengthened and diversified the Company's shareholder base.
Proceeds from the Placement, combined with existing cash reserves, will be used to advance exploration and development activities at the Company's Drummond Basin portfolio, business development activities and general working capital.
Canaccord Genuity (Australia) Limited acted as Lead Manager and Bookrunner to the Placement with Argonaut Securities Pty Ltd as Co-Lead Manager.
The issue price of A$0.053 per New Share represents a 3.6% and 4.7% discount to the Company's closing share price and 10-day VWAP per share respectively.
The Placement will be completed in two tranches as follows:
a) 600,000,000 New Shares will be issued on or about 16 October 2025 under Listing Rules 7.1 (211,774,713 New Shares) and 7.1A (388,225,287 New Shares) ("Tranche 1"); and
b) 151,919,699 New Shares to be issued to WWL, subject to shareholder approval, to be sought at a Meeting of the Company's shareholders ("Tranche 2"). A notice of meeting will be sent to shareholders shortly.
GBM Chief Executive Officer, Daniel Hastings, commented:
"We are delighted with the extremely positive and overwhelming response received by the Company for the Placement and wish to thank all shareholders including Wise Walkers, for their continued show of support in the Company. The strengthening of the balance sheet provides a robust platform to not only grow the existing resource base at the key Twin Hills and Yandan deposits (combined Mineral Resources of ~1.5Moz) but importantly to undertake systematic exploration and test new regional targets, allowing the Company to fully unlock and maximise the potential across the Company's entire Drummond Basin portfolio."
*To view the indicative timetable, please visit:
https://abnnewswire.net/lnk/AAY1679F
About GBM Resources Limited
GBM Resources Limited (ASX:GBZ) is a well-funded Queensland based mineral exploration and development company focused on the discovery of world-class gold and copper deposits in Eastern Australia. The company has a high calibre project portfolio, hosting district scale mineral systems, located in several premier metallogenic terrains.
GBM's flagship project in the Drummond Basin (QLD) holds ~1.84 Moz of gold in JORC resources (Mt Coolon, Yandan and Twin Hills). Some tenements in the Basin have recently become the subject of a A$25m farm-in with Newmont. An expanded drilling program is aiming to define 2-3 Moz and support GBM's transition into a mid-tier Australian gold company.
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