Argonaut has been successful in the Placement of A$5 million (gross) for ABM Resources Limited (ASX: ABU) (“ABM”) via a Placement to Australian and Asian institutional and sophisticated investors of approximately 22.7 million new ordinary shares at an issue price of A$0.22 per share together with joint lead manager, Canaccord Genuity.
The Placement will be followed by a fully underwritten non-renounceable rights issue of one fully paid ordinary for every eight Shares held by eligible shareholders at an issue price of $0.22 per share to raise up to approximately $7.7 million.
The funds will be used for development and commissioning costs to bring the Old Pirate gold project into production, near-mine & regional exploration and general working capital.
Commenting on the Placement, Managing Director Darren Holden said “We are delighted with the strong support for the Company from both ABM’s longstanding shareholders and new investors. Completion of the Offer will strengthen ABM’s balance sheet as we enter the 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. We greatly appreciate the support of all our shareholders as we enter this exciting phase of our development and we look forward to the participation of our eligible shareholders in the Offer.”
Argonaut is delighted to be involved with ABM and looks towards the relationship continuing.
Additional information regarding the Company and the Capital Raising can be found on the company’s website at www.abmresources.com.au.
