GBM Resources (ASX:GBZ) announced it has regained ownership of the Mount Coolon gold project in Queensland following Newmont’s (TSX:NEM,NYSE:NEM,ASX:NEM) termination of a 2022 farm-in agreement.
GBM made the deal with Newcrest Mining before that company was acquired by Newmont in 2023.
Newmont’s withdrawal is part of its focus on divesting non-core assets to hone in on its more profitable and stable tier one operations. The company has made substantial adjustments to its portfolio this year.
GBM reacted positively to Monday’s (September 15) news, saying that regaining full ownership of the project aligns with its strategy to build a leading gold portfolio in the Drummond Basin.
“We are excited to regain 100 percent ownership, and our exploration team are enthusiastic about getting on the ground as we see significant upside on the Mt Coolon Tenure,” commented CEO Daniel Hastings.
Located within the Drummond Basin and near GBM’s Twin Hills and Yandan projects, Mount Coolon has a JORC resource of 6.65 million tonnes at 1.54 grams per tonne gold for 330,000 ounces of the metal.
Together, Twin Hills and Yandan hold a total resource of 1.84 million ounces of gold.
“With Twin Hills and Yandan nearby, we now control a substantial area of highly prospective ground within the Drummond Basin which provides GBM with the scale and flexibility to unlock significant value,’ Hastings added.
Newmont also announced the sale of its Coffee project in Yukon, Canada, to Fuerte Metals (TSXV:FMT,OTCQB:FUEMF) on Monday for potential total consideration of US$150 million. The company said that sale was also part of its efforts to streamline its portfolio and sharpen its focus on core operations.
On September 10, Newmont said it plans to voluntarily delist from the Toronto Stock Exchange.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.