GBM secures Qld gold project

Perth-based GBM Resources is paying $3 million to buy a gold project in Queensland, close to its flagship Mount Coolon asset.

Aeris Resources announced today it would offload its non-core Yandan gold project in the Drummond Basin, about 40 kilometres west of Mount Coolon.

The news sent GBM's shares up by more than 37 per cent, with the company closing at 20 cents.

The Yandan project has historically produced 350,000 ounces of gold and already has established mine infrastructure including power, water dams and tailings, GBM said.

The company will issue $3 million worth of shares to Aeris subsidiary Straits Gold, while Aeris will also be granted a 1.5 per cent net smelter royalty on the first 300,000oz mined.

Aeris will also subscribe for $1 million additional GBM shares.

The acquisition is subject to a number of conditions including approval from GBM shareholders, which the company will seek at a meeting on Thursday.

Managing director Peter Rohner said the Yandan purchase was an important milestone for the company's processing halo strategy in the Drummond Basin.

GBM also has gold projects in NSW and South Australia.