ABM Resources (ASX: ABU) has successfully raised $15.125 million through a share placement, strengthening its financial position and supporting advancement of its gold projects.
The placement, which comprised 275 million shares at $0.055, has been well supported by institutional and sophisticated investors in Australia and internationally.
ABM managing director Darren Holden has previously said that funds from the raising would support advancement of its gold projects.
"The completion of this capital raising will see the company in a very strong financial position, and planning is currently underway to deploy the capital to advance our green-fields as well as our more advanced projects, including detailed work on the economics of the high grade Old Pirate Gold discovery,” Holden said.
ABM recently discovered very high grade gold at the Old Pirate prospect, which is hosted within the company's 1.67 million ounce Twin Bonanza Gold Camp Project in the Northern Territory.
Trenching results from the prospect when combined total a strike length of 582 metres and a weighted average of 23.98 grams per tonne gold.
At the end of the December quarter, 2011, ABM had $9.15 million in cash. Adding the funds from the placement to this means the company is well funded for all of its activities going forward.
Ongoing exploration success highlights the potential for ABM Resources to push past the milestone 2 million ounces gold mark in the short term.
The company is planning to deliver a Resource upgrade in the March quarter of 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24919/abm-resources-completes-151-million-placement-well-funded-for-gold-exploration-and-development-24919.html