ABM to raise $14.2m for gold exploration

Perth-based minerals explorer ABM Resources has announced plans to tap investors for a $14.2 million capital raising to fund development of the Old Pirate gold deposit in the Northern Territory.

In a statement today, ABM said it had undertaken a placement of about 22.7 million shares at a discounted price of 22 cents per share, to raise about $5 million.

“The placement will be followed by an underwritten non-renounceable rights issue of one fully paid ordinary share in the capital of the company for every eight shares held by eligible shareholders to raise about $7.7 million,” ABM said.

The company has also agreed to make an additional placement to Pacific Road Capital of approximately 6.8 million shares to raise a further $1.5 million.

That will allow Pacific Road to retain its 19.9 per cent holding in the company.

ABM managing director Darren Holden said completion of the offer would strengthen the company’s balance sheet as it entered a critical construction and commissioning phase at Old Pirate.

“It will also enable us to develop a strong near-mine and regional exploration program from the beginning of the 2015 field season,” he said.

Argonaut Capital and Canaccord Genuity were joint lead managers and bookrunners to ABM’s placement, and were underwriters to the entitlement offer.

ABM shares closed 11.1 per cent lower at 24 cents per share.