ABM plans $19.6m share placement

Nedlands-based gold explorer ABM Resources has outlined plans to raise $19.6 million from private equity fund Pacific Road Capital as it aims to bring its Old Pirate project in the Northern Territory to production.

ABM will issue about 816 million shares at 2.4 cents per share to Pacific Road over two tranches, subject to shareholder approval.

Pacific Road will hold about 20 per cent of ABM shares upon completion of the placement and will gain the right to nominate a non-executive director to join the ABM board.

ABM said the placement would allow it to complete an extensive drilling program at Old Pirate before commissioning a processing plant at the end of this year.

It also plans to complete a scoping study at the nearby Buccaneer gold prospect. 

"Pacific Road Capital will bring significant technical expertise in development and mining to ABM and will support the company with key board appointments and the establishment of a technical steering committee," ABM managing direector Darren Holden said.

ABM shares were trading 7.4 per cent lower at 2.5 cents at 11:19am WST.