ABM Resources (ASX: ABU) has welcomed a Hong Kong-based company as a major shareholder, reflecting ABM's position as a strong emerging gold exploration and discovery company with near-term prospects.
Global resource investment business APAC Resources has taken up a 19.99% stake in ABM through a transaction with Tanami Gold.
As a result of this agreement, APAC will become ABM's largest shareholder.
Tanami has agreed to sell 508 million ABM shares to APAC, along with a further 139.8 million shares after Tanami exercises 300 million options at $0.015.
The exercise of Tanami's options will provide ABM with $4.5 million, bolstering the company's cash position to about $28 million.
ABM managing director Darren Holden said the transaction was positive for the company, with a new major shareholder that "understands the business of resource investment and holding strategic stakes in emergent companies".
APAC Resources CEO Andrew Ferguson said the investment was a good opportunity for the company, citing ABM's near-term potential at the high grade Old Pirate Gold Prospect and mid-term potential at the large Buccaneer Gold Porphyry Deposit.
"These leading assets, along with the regional discovery portfolio in one of the most unexplored gold belts on the planet, combine to give great optionality within a quality gold exploration business.
ABM recently discovered further high grade gold at Old Pirate, with results from a Phase 3 bulk trenching program at Old Pirate averaging 29.77 grams per tonne (g/t) gold over a combined vein strike length of 155 metres.
The discovery was made in an area 100 metres south of previously reported veins.
The peak assay returned from the Phase 3 program was an impressive 215g/t gold.
ABM will continue to work closely with Tanami Gold, with geographic, project and infrastructure synergies between the two companies.
ABM and Tanami recently signed a Memorandum of Understanding to assess the economic potential of processing ore from ABM's Old Pirate at Tanami's Coyote Gold Mine, which is within easy trucking distance being located just 45 kilometres from Old Pirate.