ASX-listed GBM Resources on Tuesday announced a A$13-million capital raise, a board restructure, and a strategic agreement to regain full control of its Twin Hills gold project in Queensland’s Drummond basin.

The two-tranche placement, priced at A$0.006 a share, was supported by new and existing institutional and sophisticated investors. Mining executive Ian Middlemas has subscribed for A$1.2-million and will be appointed as nonexecutive chairperson.

Proceeds from the placement will be used to fully repay the company’s A$6.17-million convertible notes issued to Collins St Asset Management (CSAM), which had been secured against GBM’s assets. 

“We are extremely pleased to welcome Ian Middlemas as our new chairman and acknowledge the strategic support of Wise Walkers Ltd (WWL), who share our long-term vision for building a district-scale gold company,” said GBM executive director Andrew Krelle.

As part of the restructure, Middlemas will be joined on the board by Peter Fox and Robert Behets as nonexecutive directors, while existing chairperson Sunny Loh transitions to a nonexecutive role.

MD Peter Rohner will step down but remain as CEO until the end of July, after which he will continue with the company in a consultancy role. 

“On behalf of GBM, I thank Peter Rohner for his vision and efforts to consolidate and secure some of the most prospective gold ground in Australia, and welcome the support from Ian Middlemas. With a strong debt-free balance sheet, GBM now has a great opportunity to deliver value to shareholders through an accelerated exploration programme across Twin Hills and Yandan,” Krelle said.

The placement coincides with GBM securing full ownership of the Twin Hills project through the termination of the previously proposed farm-in agreement with Hong Kong-backed WWL. WWL will instead become a strategic cornerstone investor in GBM, converting its A$2-million contribution under the former farm-in into equity at the placement price, and subscribing for an additional A$2-million in shares.

Upon completion of both tranches of the placement, WWL will hold a 19.99% stake in GBM and has been granted the right to nominate a board representative. 

GBM’s exploration strategy is focused on expanding its 1.84-million-ounce gold resource base across the Twin Hills and Yandan projects, with drilling expected to target epithermal gold mineralisation.

GBM stated that the strengthened board brings “a wealth of experience, knowledge, and networks” to the company.