Perth, Oct 6, 2008 (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
The Company owns a portfolio of base metals and gold project interests. The base metals projects are located in Western Australia (zinc, lead and copper) and Zambia (copper). The gold projects are located at Mimosa, Mozambique and Broads Dam near Kalgoorlie in Western Australia. The conceptual exploration framework of the company is focused on delineating major mineral discoveries.
The current primary exploration focus is the substantial regional-scale Volcanic Massive Sulphide (VMS) base metals project at Erayinia located in Western Australia and the highly prospective Mimosa gold project located in Mozambique. ABM Resources also holds interests in another 3 Western Australian base metals projects; the Gascoyne Joint Venture, and 100% held tenements at Earaheedy and Harbutt Range in Western Australia.
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