ABM Resources (ASX: ABU) has received a major boost by attracting a new major international institutional investor in Craton Capital, with a non-brokered private placement of 177.8 million shares $0.045 to raise A$8 million.
The placement was struck at a premium to the last traded price, a positive for ABM. The influx of funds will also insulate ABM against market cycles and enable ABM to accelerate exploration.
The placement represents around 6.5% of the shares in ABM Resources, with the placement expected to be completed in the next two weeks.
Darren Holden, managing director for ABM Resources, 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.”
Twin Bonanza in the Northern Territory hosts an Inferred Resource of 1.67 million gold ounces, which is likely to increase as the company continues to hit gold in step-out drilling.
Markus Bachmann, chief investment officer for Craton Capital, 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.”
Craton Capital was co-founded by mining specialists Markus Bachmann, Dr Joachim Berlenbach (since departed) and Doug Ellish in 2003.
Bachmann leads the Johannesburg-based investment team of five and leverages a network of consultants based around the world that he has developed over the years.
Tanami Gold (ASX: TAM) through a subsidiary is entitled to also apply for shares under the same terms based on the company's pro-rata holding in ABM Resources.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17805/abm-resources-new-a8m-cornerstone-investor-in-craton-capital-17805.html
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