ABM Resources NL (ASX:ABU) Welcomes Hong Kong Based APAC Resources (HKG:1104) to Acquire 19.99% in ABM Resources
Andrew Ferguson, CEO of APAC Resources said, "This strategic investment in ABM is a great opportunity for APAC. ABM has proven itself over the past two years to be one of the best emergent gold exploration and discovery companies in Australia. ABM offers near-term development potential of the high-grade Old Pirate Prospect along with the mid-term opportunity of the large Buccaneer Gold Porphyry Deposit and its satellite discoveries. These leading assets along with the regional discovery portfolio in one of the most underexplored gold belts on the planet combine to give great optionality within a quality gold exploration business."
Darren Holden, Managing Director of ABM Resources said, "The ABM Board of Directors is very pleased with this share transaction between Tanami Gold and APAC relating to the purchase of shares in ABM. APAC, as evidenced by their recent transaction relating to Kalahari Minerals PLC, understands the business of resource investment and holding strategic stakes in emergent companies. Furthermore, the transaction entails the exercise of share options in ABM and hence even further bolsters ABM's balance sheet to a cash position of approximately $28 million."
ABM Resources and Tanami Gold will continue to work very closely together with the clear geographic, project and infrastructure synergies between the two Companies. ABM and Tanami Gold recently signed a Memorandum of Understanding to work collaboratively to investigate the processing of high-grade gold-bearing material from ABM's 100% owned Old Pirate Gold Prospect and both companies are fully committed to this process."
About The Transaction
Today Tanami Gold announced that it has entered into an agreement to sell 508,014,212 shares in ABM Resources to APAC Resources Limited. Furthermore, Tanami Gold will exercise all of its 300 million options at $0.015 for gross proceeds to ABM Resources of $4.5M. Tanami Gold is contracted to sell 139,896,797 of the shares issued from the option exercise to APAC. As a result APAC will become ABM's largest shareholder with a total holding of 19.99% of ABM's shares on issue.
About APAC Resources
APAC Resources is an established natural resources investment and commodity business listed on the Hong Kong Stock Exchange. APAC owns strategic interests in world class natural resource companies, focused on metals and energy. APAC is headquartered in Hong Kong with its commodity business run from Shanghai and Hong Kong.
APAC Resources was named in Forbes Asia 200 'Best Under a Billion" awards for 2011.
APAC holds investments in resource companies with assets in Australia, North America, South America, Asia and Africa. As of 31st December 2011, APAC Resources' Net Asset Value was HK$0.68 per share* which is approximately HK$4.657 billion (approximately AU$600 million) and posted a net profit of HK$1.462 billion* (approximately AU$177 million) for the 18-month period ending 30th June 2011.
*Sourced from APAC Resources Ltd February 2012 Investor presentation available on their website
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.
Tanami Gold NL
Apac Resources Limited
ABM Resources NL