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GBM Resources Signs MoU To Acquire Malaysian Gold Mine

GBM Resources (ASX: GBZ) has entered into a non-binding Memorandum of Understanding to acquire the Lubuk Mandi Gold Mine in Terengganu state, Malaysia.

The mine had previously produced 108,000 ounces of gold from two shallow pits before it and its associated processing plant were placed on care and maintenance in 2000.

Lubuk Mandi Gold Mine was previously owned and operated by government body Terengganu State Economic Development in the mid 90's and covers 404.7 hectares.

It includes 1.3 million tonnes of tailings which have the potential for further gold recovery while the processing plant is rated at 300,000 tonnes per annum and involves single stage crushing to a stockpile and mill.

GBM is currently carrying out due diligence and is investigating some key outcomes including an early start up scenario, requirements to achieve a Resource, funding options and valuation.

It said the project presents an excellent opportunity to transit from explorer to producer and is being supported in this strategy by its major Singaporean shareholders.

GBM had recently received approval from its Japanese partners, Pan Pacific Copper Co. and Mitsui & Co for a $2.5 million exploration budget to drill a number of high order targets on four projects in northwest Queensland.

The company had $1 million in cash as of 31 March 2013.

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