News: GBM Gold to sell remaining stake in gold project for $2.4 million

GBM Gold (ASX:GBM) has entered into an agreement to sell its remaining shares in Inglewood Gold Mining Company to Wilshire Asset Management SA for about $2.4 million.

Wilshire had in September 2012 agreed to invest $9 million into Inglewood, which holds the Inglewood project in Victoria that encompasses the Inglewood Goldfield as well as the smaller Wedderburn goldfield.

The Inglewood goldfield had previously produced about 130,000 ounces of gold with GBM having identified exploration targets exceeding 600,000 ounces.

This was amended in November 2013 under which Wilshire paid $4.5 million for a 50% shareholding in Inglewood as well as an option to increase its interest to 80% through a further payment of $1.5 million and assumption of the Maradox Gold loan liability of approximately $3 million.

Wilshire has since indicated its intention to exercise this option, which would have left GBM with only a residual 20% shareholding in Inglewood.

This led to the decision to sell the remaining interest to Wilshire.

On completion of the sale GBM will have the flexibility and resources to pursue gold projects free from the debt burden that it has carried in recent years resulting from loss making operations.

Separately, the two parties have agreed to terminate an agreement for Wilshire to purchase GBM subsidiary Industrial Sands & Gravels Pty Ltd for $5 million.

GBM will credit Wilshire the $750,000 deposit it paid.

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