Perth, Aug 25, 2008 AEST (ABN Newswire) - ABM Resources NL (ASX:ABU) is offering its shareholders the opportunity to increase their holding and participate in the continued growth of the Company through a Share Purchase Plan (SPP).
ABM Resources Executive Chairman Mr Imants Kins said the SPP would raise up to 5 Million to drive further Company exploration at the company's flagship projects Erayinia near Kalgoorlie and Mimosa in Mozambique, and at the highly prospective gold prospect at Broads Dam.
As at the record date of 25 August 2008, eligible shareholders will have the opportunity to purchase additional shares for 3 cents per share. Shareholders can elect to take allocations of $999.99, $3000 or $4999.98 worth of shares. The maximum shares that can be issued are estimated to be about 168 million.
The issue price represents a 9.37% discount to the volume weighted average price of the Company's shares in the five trading days prior to the announcement (3.31 cents per share as determined by the ASX).
The offer will open on 2 September 2008, and will close at 5pm WST 23 September 2008.
Mr Kins said the SPP came at a time of significant progress for ABM and its shareholders.
"In terms of the quality of its portfolio and exploration progress ABM has never been in a better position. ABM continues to be encouraged by the exploration results at the VMS discovery at King in Erayinia with recent results increasing the strike length of the project. Assay results of recent diamond drilling at the northern and southern lens (approximately 200 metres from the northern lens) are awaited with much interest. Further assay results are awaited from the drilling at the Mimosa Mozambique gold discovery.
"After completion of the current drilling programs we will focus on analyzing all the results and data and determine a resource estimate for King (in house and then using an external consultant) and the next drilling program for Mimosa in Mozambique," he said.
"Through the SPP shareholders will have the opportunity to participate in this exciting period of growth for ABM, as we strive over the next 12 months towards our goal of defining a resource at King and finding a major gold discovery at Mimosa and Broads Dam near Kalgoorlie," Mr Kins said.
About ABM Resources NL
ABM Resources (ASX:ABU) is developing several gold discoveries in the Central Desert region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high-grade production scenarios such as the Old Pirate High-Grade Gold Project, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Hyperion Gold Project. In addition, ABM is committed to regional exploration programs throughout its extensive holdings including the alliance with Independence Group NL at the regional Lake Mackay Project.
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