GBM Gold is yet to receive a $3 million loan to kick start its Bendigo Goldfield mining operations at Kangaroo Flat, almost two months after announcing it had secured investment.
The ASX-listed company in October announced a Hong Kong-based investment group had committed $2.75 million to help GBM resume mining activity in central Victoria.
That cash was later cancelled after failing to settle on time and the company said it would take out a $3 million loan from its largest shareholder, Silver Bright International Development, to cover the shortfall.
The company entered a trading halt last month and, according to the ASX website, remains in suspension.
In its latest update to the ASX this week, GBM Gold said the delivery of funds had again been delayed and it was in discussions with another party to “provide a short-term loan before December 4”. The funds will be used to pay a third deferred bond payment to former Kangaroo Flat mine owner Unity Mining for mining assets, as well as working capital purposes.
Unity Mining agreed to sell its Kangaroo Flat gold plant, equipment and mining and exploration tenements to GBM Gold in September, 2015.
More on GBM Gold’s plans to explore Bendigo Goldfield:
The arrangement included a $5.9 million deferred bond payment over three years to meet rehabilitation obligations in Bendigo.
The company detailed a loss of $1.02 million in the 2017-18 financial year in its annual report, which followed a deficit of $1.3 million the previous year. The ASX queried the financial position of GBM Gold Ltd in May.
A letter addressed to the company by an ASX compliance officer asked GBM Gold to detail what plans it has to arrest “negative operating cash flows” which were detailed in the company’s quarterly report.
A GBM spokesperson at the time suggested the ASX query was “certainly nothing out of the ordinary”.
An ASX spokesperson said it continued to watch the matter closely.
GBM Gold did not respond before deadline.