JOHANNESBURG (miningweekly.com) – Australian resources company GBM Resources has formalised an agreement with China’s Jiangxi Centre Mining (JCM), which will provide the ASX-listed company with a funding strategy to explore and develop its projects.
GBM, which is building a gold portfolio in Malaysia and the east coast of Australia, reported on Wednesday that JCM, which is owned by Jiangxi Provincial Bureau of Coal Geology, will subscribe for new shares in GBM representing up to a 19.9% shareholding.
The agreement formed part of a broader strategic alliance to acquire additional near-term development projects in other key commodities.
“This proposed transaction will provide a funding boost for the company in a very uncertain economic environment. A strong cash position will create the foundations to develop our portfolio of projects,” commented GBM chairperson Peter Thompson.
“Having a strong technical group like JCM with downstream expertise from discovery to production on board enables us to explore in other key commodities, and I am pleased to have the opportunity to partner with JCM in meeting its development objectives within the resource sector.”
JCM is a business unit of the Jiangxi Provincial Bureau of Coal Geology, a large Chinese industrial conglomerate actively engaged in mineral exploration, mineral development, engineering construction and property development in and around the Jiangxi province and globally. Its mineral exploration projects include the commodities of coal, coal-bed methane, gas, vanadium, copper, gold, rare earths, salt and iron-ore.