ABM Resources NL (ASX:ABU) Welcomes New Cornerstone Investor
Perth, July 12, 2011 AEST (ABN Newswire) - ABM Resources NL (
ASX:ABU) is pleased to announce a non-brokered private placement in the Company to Craton Capital LLC ("Craton Capital"). In an irrevocable agreement signed overnight ABM will issue Craton Capital with 177,777,778 fully paid ordinary shares in ABM at a price of A$0.045 per share. The gross proceeds will be A$8 million which will represent approximately 6.5% of the shares of the Company. It is anticipated that the placement will be completed in the next two weeks.
ABM Managing Director, Darren Holden said "Craton Capital is a resource and precious metals specialist with a strong reputation in funds management and we warmly welcome Craton Capital as a shareholder in ABM. We now look to further accelerate our exploration programs including extensional work at the Company's leading Twin Bonanza Gold Camp and other regional targets."
Chief Investment Officer at Craton Capital, Markus Bachmann said, "We at Craton Capital are very pleased to make this significant investment in ABM Resources. ABM's projects including the Twin Bonanza Gold Camp show great potential for continuing discovery and growth. Furthermore we have great trust in management of ABM to continue to deliver the results and build a quality gold company."
Tanami Gold NL (ASX:TAM) via its wholly owned subsidiary Tanami Exploration NL is entitled to also apply for shares under the same terms based on their pro-rata holding in the Company as per a previous agreement. Tanami Gold is expected to notify the Company of their involvement within the coming days.
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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