Firstly, I must apologize to my follow shareholders...I "maybe" like many of you, skim over the ABM announcements.
I must request that anything the comes out of this bloody company is read thoroughly...and twice!
Ok kids...I'm told we need funding or ABM goes under?
We need this RI of 8.3M (200M shares!) so with can get 6M for exploration?!
Right??? I ask again...RIGHT????????
Well, according to ASX docs released by ABM on March 23rd...we already have this deal SIGNED!!!!
Sec2 clearly states this phases of the IGO agreement ( Independence Group NL - ASX: IGO ).
-IGO spends 1.6M in 5 years. (I assume that's being spent now and other money was spent in the past?)
-IGO has a option on the leases...ABM get's 1M cash or 1.5M in shares (new share placement), then they are locked in to spend another 6M on exploration in 4 years!
-1.5 million worth of shares is (33.5M NEW shares)...at 4.5 cents...9.7% of ABM Resources. It's escrowed for 6 months too! nice.
Oh yes...lets have a little chat about this!
Can someone tell me how this isn't a better option than issuing 200M shares at 4 cents to someone who's NOT a miner? Plus, you get the EXACT same 6M in exploration funding!!!
You stop crazy dilution. Bring a new a new respected billion dollar miner shareholder in. (this automatically puts ABM on every investors/ analysts radar and HAS to dramatically change the valuation of ABM as 6M of exploration is being spend on JUST 1 area we have.)
-Let's talk about the corp side of this...If 33M new shares are issued...that dilutes PRC at 19.85%.
-Let's not kid ourselves here. ABM is SERIOUSLY under valued. I think IGO would be willing to inject more CASH to get to the 19.99%. Why wouldn't they invest another 1.5M in the mothership asset when they are forced to spend 6M in exploration? (What if they find another big strike, owning more ABM just makes sense as it's so cheap) Maybe even more cash?
To not only to get a good ROI but, to control more of the assets of the other 37,000kms. We'd get 3M in cash (new stock issued) if they went to 19.99%. However, the stock without too much trouble get's back to the 20-30 cent range as a IGO deal craps over anything over the little O/P operation could have done.
-Everyone including IGO knows that ABM takes off if they have a 10%-19.99% stake.
-The bonus is ABM doesn't get to be involved in anything to do with looking for gold or mining it. Hell, I'd be willing to give IGO another 5% just knowing that before I put my head on the pillow.
-Now...we start to figure out all the back office deals and control issues PRC is doing. It makes sense now.
PRC KNOWS the assets of ABM have real value. They know the IGO deal. They know there's billions of Gold in Bumblebee. I think we know IGO knows there's lots of gold there and wants to excised their option. (they said it yesterday in a ASX release) If PRC get's in first...and get's a sheet load of ABM before this happens...they'll do much better. It all makes since if you think about it. It hasn't been about O/P...it's Lake MacKay. I guess you can't blame them for trying.
Please check out http://www.pacroad.com.au/content_common/pg-capital-our-people.seo
(these people are miners and geologist. They've been investors for 2 years...you think they haven't put boots on the ground and checked every drilling result in detail?)
If you actually read their whole website...they basically say this!
With IGO on board at 10% first...PRC don't get to make as much money. (they can't avg. down on something they KNOW will double or triple or go up 10 fold) . PRC buy price is 30-40 cent-pre-split? Double down at 4 cents? That would be nice, wouldn't it.
If 70M shares are issued to IGO, PRC are diluted even more...They lose there grip on ABM as you KNOW for a fact IGO is getting a board seat at 19.99%. If we are having a shark on the board. I'd prefer a ASX miner shark. The market will low after the valuation after this deal is done. IGO not going to sneak in and grab us for 20-30 cents. It would need to start at 50 cents.
-For ABM shareholders this is Mecca. With 19.99% ABM will always trade at a Take-over premium as you'd think it's always a possible and other fund managers/investors would think that too.
-After this deal kicks it the stock takes off. Come on...I've been told by 3 experienced miners that with the gold on Bumblebee's IGO would easily get funding for 50-100M plant for 1M oz operation. Everyone says the drilling result show 1-2 Billion worth of Gold there. Why would IGO sign 7M+ extension to the deal if they weren't sure?
Plus, that's just BB...they are spending another 6M on exploration on the whole area!!!! Oh my! Who know what else they could find?
-All of ABM assets are given a second look by the other miners as that exploration GREED I talk about before kicks in.
-NST? If we could lock in another JV with them...or even issue another 20% in shares and have 2 major miners as shareholders!! Speechless. 50 cents-$1.00 with no problems.
Can everyone else see that IGO is in place now?
Has PRC delayed this? Are they rushing a RI to get a bigger piece of ABM at a lower price before IGO decide take up their option? The RI doesn't really affect the Lake MacKay JV for IGO. The deal is signed. PRC just makes way more money by sneaking in this RI.
Yesterday...in a ASX release...IGO stated they are focusing on Lake MacKay as 1 of their 3 exploration focus areas.
I'm now praying for the T/O panel to knock back PRC.
(I'm hoping the stock falls, as I'm cashed up and ready to pounce!)
Look at the ABM/IGO agreement!
The above is IMO but look...it's there in black and white via the ASX.
ABM isn't going under...a better deal is ALREADY in place. If knocked back...PRC MUST welcome the IGO deal with open arms.
I'll post later what I think the ABM valuation is once the IGO deal is in place. Just spitballing...the share go to 6-8 cents. Then you need to value the IGO deal and what value 6M of exploration and having a new shareholder (who's one of Australia's largest miners) with 10%+ of the shares does. The Lake MacKay area is Just one area of over 37,000km of gold bearing prospect ABM has. (Look at the drilling results of the past few years in the other areas)
Things are now looking up now!!!
ABU Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
