Perth, Oct 6, 2008 AEST (ABN Newswire) - ABM Resources NL (ASX:ABU) is pleased to announce it has reached an in-principle agreement with Blackwood Capital Limited ("Blackwood") to raise gross funds of up to A$1,012,040 through the placement of up to 84,336,699 shares at $0.012 per share, with a 1 for 5 free attaching unlisted option with an expiry period of two years and an exercise price of $0.02, to institutional and sophisticated investor clients of Blackwood. The unlisted options are subject to shareholder approval at the AGM of the Company scheduled for 27 November 2008.
Blackwood has advised that they have received firm commitments for the total placement and funds are expected to be received by Wednesday 8 October 2008. The placement is expected to be made in one tranche and the Appendix 3B in relation to the issue will follow in due course. As a condition of a maximum share placement raising Blackwood will receive, subject to shareholder approval, 30 million unlisted options with an expiry period of two years and an exercise price of A$0.02.
Funds raised from the placement will be applied towards further evaluation of the Mimosa Project including the recent gold discovery, preparatory exploration work of the Broads Dam gold project, evaluation of the Erayinia base metals project and for working capital purposes.
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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