PERTH (miningweekly.com) – ASX-listed GBM Resources has signed an ore sale and purchase agreement for its Mt Coolon gold project, in Queensland, with Minjar Gold.
The agreement will see GBM mine ore at Mt Coolon, and then truck this ore to the Pajingo gold operation for processing, by Minjar.
Ore deliveries are expected to start in March next year, and the agreement will have an initial two-year term. GBM will receive attributable free cash flow equating to some 58.5% of the contained gold.
GBM said on Wednesday that the next steps under the agreement would see the two companies finalise the detailed mining and milling schedule for the Mt Coolon ore sales.
The company told shareholders that the ore purchase and sales agreement provide the company with an opportunity to achieve accelerated gold production and cash flow, coupled with a considerably lower upfront capital requirement.
The agreement also provided a staged approach to developing Mt Coolon, which could enable full-scale development of the three existing deposits, alongside a standalone carbon-in-leach plant and heap leach processing facility on site.