Mount Pleasant-based GBM Resources has struck a friendly merger agreement with listed Canadian company WCB Resources, bringing together gold projects in Australia and Papua New Guinea.
The agreement is conditional on GBM completing a $10 million loan agreement,
Under the heads of agreement, each WCB shareholder will receive 8 GBM shares for every WCB share.
GBM shareholders will own about 64 per cent of the merged entity, which will focus on the reopening and development of the Mt Coolon gold mine in Queensland.
WCB’s main asset is the Misima gold project in PNG.
GBM executive chairman Peter Thompson said the complementary nature of the two companies’ assets would create a strong platform.
Both companies have Japan’s Pan Pacific Copper Co as their joint venture partner.