I haven't looked back at GMM since i bailed out the last of my holdings before the :fan
Time to take a walk down memory lane.
GMM have secured an option to purchase the Mt Success gold project located 15 km north of Mt Magnet in Western Australia.
https://onlineinvesting.westpac.com...mpanyProfile/Announcements.aspx?stockCode=GMM
The Option has been granted by Mr Clive Humberston for an initial payment of $20,000.
The Option gives the Company an initial six month period to complete a minimum of six RC drill holes with a minimum aggregate of 300m of drilling.
The Company can extend the Option period by a further six months on payment of $20,000 and a further extension of 18 months by paying an additional $30,000. Should the Company exercise the option it will receive 100% of the Project by payment of $900,000.
The Project has been continuously held by the Mr Humberston since 1987 and has a small gold mining operation on it that is currently dormant.
A cap raising has taken place.
Capital Raising
As announced on 31 January 2012, Investmet has agreed to take a strategic stake in the Company and to assist in raising up to $1.9m through a two stage capital raising, as follows:
● Placement of a total of 20,000,000 Shares at $0.05 each (and a total of 20,000,000 free attaching unlisted Options) to Investmet and its nominees to raise $1m; and
● Non‐renounceable rights issue of 18,006,925 Shares at $0.05 each on a one for five basis (and 18,006,925 free attaching listed Options), fully underwritten by Investmet subject to an underwriting agreement being entered into, to raise $0.9m (before issue costs).
The proceeds from the capital raising of $1.9 million are to be used by the Company with its available cash of $359,768 (as at 31 December 2011) to:
● Fund the Company’s current minimum expenditure commitments of $1,288,843 (to 31 December 2012), to continue exploring its potash, iron, gold, base metals and other metals and minerals prospects in Mongolia and Western Australia with the view to the eventual development and mining of mineral resources;
● fund costs of approximately $120,000 for the capital raising, including a proposed underwriting fee of $50,000; and
● Fund $50,000 of the consideration and $63,000 for the cash backed security required for performance bonds in connection with the Company’s acquisitions of the Mercury Hill Project and Chesterfield Project respectively.
From their last quarterly.
http://www.asx.com.au/asxpdf/20120430/pdf/425z41mkgk7dtw.pdf
HIGHLIGHTS
● Due diligence continues on potential coal exploration interests at Uvs in Mongolia
● Work program recommended for Khangai Project in Mongolia
● Strategic partner secured and plans for two stage capital raising, in conjunction with acquisitions of two new gold projects in Western Australia
From my perspective, the fact they want to bring in a JV partner to continue potash exploration in Uvs, leads me to believe their faith in that project is dwindling.
How confident are they in the coal angle of Uvs? They decided to drill for potash first, so the coal must be the secondary target, again points me to lack of faith in coal. Plus they are looking at coal closer to Chinese border, so how strong is their conviction in Uvs?
From memory, Shoemaker was a bit of a turkey too.
Now 2 gold tenaments (possibly!), that's not enough to see me back in GMM.
Dear General Mining,
We had a lovely fling, it was a short wonderful time in my life where i used you to make money, unfortunately you have lost your looks and your a$$ is starting to sag a little.
For these reasons i must bid you farewell and move on to the next perky floozy.
All the best,
SH.
P.S. please stop texting me at 2am!