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ABM Resources A$15.1m Placement Well Supported, High Grade Gold Discoveries To Be Advanced

ABM Resources (ASX: ABU) has received a major vote of confidence in the company's emerging gold projects, with a $15.125 million share placement being well supported by institutional and sophisticated investors in Australia and internationally.

The placement comprised 275 million shares at $0.055, with Darren Holden, managing director, commenting on the support for the placement:

"The board of directors of ABM is very pleased with the response to this placement, which received particularly strong support. ABM Resources welcomes a number of new institutional shareholders to its register.

"The completion of this capital raising will see the company in a very strong financial position, and planning is currently underway to deploy the capital to advance our green-fields as well as our more advanced projects, including detailed work on the economics of the high grade Old Pirate Gold discovery."

ABM Resources has recently discovered some very high grade gold at the Old Pirate prospect, which is hosted within the company's 1.67 million ounce Twin Bonanza Gold Camp Project in the Northern Territory.

Trenching results from the prospect when combined total a strike length of 582 metres and a weighted average of 23.98 grams per tonne gold.

Analysis

With a resource update planned for delivery in the March quarter of 2012, ongoing exploration successes highlight the potential for ABM Resources to push past the milestone 2 million ounces gold mark in the short term.