Established Australian copper and gold producer and explorer, Aeris Resources (ASX: AIS) today announced the sale of the Yandan Gold Exploration Project in North Queensland to GBM Resources (ASX: GBZ).
Aeris will receive $3 million of GBM shares and a 1.5% Net Smelter Royalty on the first 300,000 ounces of gold equivalent mined from the Yandan tenements.
Concurrently Aeris will subscribe for $1 million in GBM shares through a separate placement.
Completion of the transaction is subject to various conditions including GBM shareholder approval and entry into definitive sale documentation amongst others. The transaction is anticipated to be completed in December 2020.
Aeris’ Executive Chairman, Andre Labuschagne, said: “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. 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.”