19.99% of ABM Resources acquired by APAC Resources
Tanami Gold and APAC Resources have entered into an agreement whereby APAC has arranged to purchase 19.99% of ABM Resources from Tanami Gold. ABM is very excited to have APAC as their new largest shareholder on the register.
So who is APAC Resources? Well contrary to the sound of their name, they are not a mining company, but are a resources investment and commodity business based in Hong Kong. They are a noted strategic investor in emergent companies and this is particularly evidenced by their newsworthy transactions including the recent Kalahari Minerals PLC transaction.
So what does this all mean? This transaction keeps these shares off the broader market and places them in safe hands of a strategic holder. ABM Resources and Tanami Gold will remain in a close working relationship with obvious synergies of geography, projects and infrastructure.
From our point of view there are several benefits from this transaction.
1. Firstly the transaction involves an early exercise of share options in ABM. This provides a further boost to our working capital and we will have a total of approximately $28M in the bank. This extra capital will be deployed strategically across our existing portfolio of assets and will see a heightened level of exploration in 2012.
2. Secondly, we anticipate that APAC will become an important sounding board to aid ABM’s business strategies and will bring new contacts throughout the Asia Pacific region. We are pleased to have such a potentially proactive shareholder who, at the end of the day, will benefit alongside all shareholders from the growth of our business.
Published: 14th February 2012