GBM RESOURCES LIMITED. — Capital/Financing Update 2022

Jul 6, 2022

Proposed issue of securities

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Announcement Summary

Entity name

GBM RESOURCES LIMITED

Announcement Type

New announcement

Date of this announcement

7/7/2022

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +security code	+Security description	+securities to be issued
GBZ	ORDINARY FULLY PAID	25,269,262

Proposed +issue date 11/7/2022

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

GBM RESOURCES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

If the +securities are being offered under a +disclosure document or +PDS and are intended to be quoted on ASX, we also apply for quotation of all of the +securities that may be issued under the +disclosure document or +PDS on the terms set out in Appendix 2A of the ASX Listing Rules (on the understanding that once the final number of +securities issued under the +disclosure document or +PDS is known, in accordance with Listing Rule 3.10.3C, we will complete and lodge with ASX an Appendix 2A online form notifying ASX of their issue and applying for their quotation).

1.2 Registered Number Type

ABN

Registration Number

91124752745

1.3 ASX issuer code

GBZ

1.4 The announcement is

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New announcement

1.5 Date of this announcement

7/7/2022

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 Do any external approvals need to be obtained or other conditions satisfied before the placement or other type of issue can proceed on an unconditional basis? Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval 31/8/2022 Estimated No

Comments

Shareholder approval required for director participation in share placement - 2,000,000 shares.

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

GBZ : ORDINARY FULLY PAID

Number of +securities proposed to be issued

25,269,262

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? Yes

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	In what currency is the cash What is the issue price per
	consideration being paid? +security?
	AUD - Australian Dollar AUD 0.05400
	Will these +securities rank equally in all respects from their issue date with
	the existing issued +securities in that class?
	Yes
Part	7C - Timetable
	7C.1 Proposed +issue date
	11/7/2022
Part	7D - Listing Rule requirements
	7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1?
	No
	7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15%
	placement capacity under listing rule 7.1?
	No
	7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's
	additional 10% placement capacity under listing rule 7.1A (if applicable)?
	Yes
	7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's
	additional 10% placement capacity under listing rule 7.1A? 23,269,262
	7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer
	under a +security purchase plan in which existing ordinary +security holders would have been eligible to
	participate The Company did not consider that undertaking a pro rata issue or share purchase plan would deliver the required funds within the required timeframe

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes 7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

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Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

Henslow Pty Ltd (ABN 38 605 393 137)

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

(a) a Management fee of 3.0% of the gross proceeds of the Placement (Offer Proceeds); and

(b) a Placement fee of 3.0% of the total Offer Proceeds.

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue None

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

Funds raised under the Placement, along with existing cash and liquid securities will be used to support current exploration activities at the Drummond Basin Projects and provide working capital.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

None

7F.3 Any on-sale of the +securities proposed to be issued within 12 months of their date of issue will comply with the secondary sale provisions in sections 707(3) and 1012C(6) of the Corporations Act by virtue of: The publication of a cleansing notice under section 708A(5), 708AA(2)(f), 1012DA(5) or 1012DAA(2)(f)

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