Australia's GBM Resources rises on 50% stake sale in gold project

Novo Resources

25/09/2020 01:52

** Shares of gold explorer GBM Resources  GBZ.AX  rise as
much as 22.2% to A$0.165, marking their biggest intraday jump
since Aug 14
    ** Co says Canada-based gold explorer Novo Resources  NVO.V 
exercises option to buy 50% interest in its Malmsbury gold
project in Victoria (https://bit.ly/33243Dy)
    ** GBM Resources says current market value of deal about
A$6.1 mln ($4.30 mln)
    ** Says Novo has right to earn additional 10% interest by
spending A$5 mln in exploration costs over a 4-year period
    ** GBM Resources' stock hits highest since Sept 21
    ** Stock up more than four-fold this year, as of last close

    ($1 = 1.4182 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))