ABM, Tanami splurge $33m on NT projects

Perth companies Tanami Gold and ABM Resources have teamed up to buy a portfolio of gold projects in the Northern Territory from Newmont Asia Pacific for close to $33 million.

Under the agreement, ABM and Tanami Gold are acquiring the Tanami and Barrow Creek non-core divestment packages in the Tanami-Arunta Province of the Northern Territory for a total consideration of $32.78.

Tanami, on its own, will acquire the Groundrush gold project for $22 million with the purchase financially supported by the company's largest shareholder, Allied Properties Resources.

The Groundrush gold project has a resource of more than 500,000 ounces of gold, a 1.2 million tonne per annum treatment plan and 2,000 square kilometres of prospective exploration ground.

ABM will acquire Newmont's interest in seven gold projects that has a total land area of 4,700sqm and is located near Groundrush.

Tanami is a 21.55 per cent shareholder of ABM, which said the two companies will share data and logistics.

Shares in ABM climbed 0.1 cents to 3.5c while shares in Tanami 0.2c to 7.2c at 13:50 AEDT.