Aeris Resources is set to offload its Yandan gold exploration project in Queensland to GBM Resources, with the sale expected to be finalised this year.
The Yandan project has produced around 350,000 ounces of gold and hosts a JORC 2004 mineral resource estimate of 8.56 million tonnes at 1.5 grams per tonne of gold for 401,000 ounces.
Aeris will receive $3 million of GBM shares and a 1.5 per cent net smelter royalty on the first 300,000 ounces of gold produced from the Yandan tenements under the agreement.
“Whilst Yandan is a non-core asset for Aeris, we have long held the view that the Drummond Basin is highly prospective for gold-rich mineral systems,” Aeris executive chairman Andre Labuschagne said.
“The prospectivity of the Drummond Basin is a view shared by GBM and the taking of an equity position in GBM enables Aeris to maintain exposure to this highly prospective region.”
GBM managing director Peter Rohner considered the proposed acquisition as an important milestone in the company’s Drummond Basin “processing halo” strategy.
“GBM now (controls) JORC (2004, 2012) compliant mineral resources in excess of 700,000 ounces of gold at the Mt Coolon and Yandan projects, predominantly on registered mining leases with established mine infrastructure,” Rohner said.
GBM is seeking shareholder approval for the proposed transaction.