The agreement proposes that JCM will subscribe for new shares, representing up to a 19.9% shareholding.

The Jiangxi Provincial Bureau of Coal Geology is involved in exploration, mineral development, engineering construction and property development in and around the Jiangxi Province and globally. It explores for coal, coal bed methane, gas, vanadium, copper, gold, rare earths, salt and iron ore.

The agreement covers a funding strategy to explore and develop GBM projects and forms part of the broader strategic alliance to acquire additional near-term development resources projects in other key commodities.

GBM chairman Peter Thompson said signing the agreement was a milestone for the company.

“This proposed transaction will provide a funding boost for the company in a very uncertain economic environment. A strong cash position will create the foundations to develop our portfolio of projects,” he said.

“Having a strong technical group like JCM with downstream expertise from discovery to production on board enables us to explore in other key commodities, and I am pleased to have the opportunity to partner with JCM in meeting its development objectives within the resource sector.

“I would like to thank JCM for the extremely positive and professional way in which they have conducted the negotiations leading to the formation of this very significant strategic alliance and partnership.”