ann: abu&igo sign exploration agreement lake

ABM Resources NL (“ABM” or “The Company”) is pleased to announce that it has entered into a multi- phase exploration agreement (“the Agreement”) with Independence Group NL (ASX:IGO) (“IGO”) for the Lake Mackay Regional Project in the Northern Territory.
• The Agreement covers over 6,700 square kilometres of granted exploration licenses to the east of Lake Mackay in the Northern Territory and includes:
? Regional exploration tenure over one of the most under-explored belts of Proterozoic rocks in Australia.
? Numerous known mineral occurrences including the Tekapo Prospect (with previous drill results including 16m @ 3.4g/t gold & 4m @ 2.67% copper), Dodger Prospect, Taupo Prospect and Manapouri Prospect.
• Phase 1 – Option Phase (ABM retaining 100% interest): ? IGO earning the right to proceed to Phase 2 by:
• Spending $1.6M on exploration expenditure.
• After 2 years IGO can elect to withdraw or proceed to Phase 2.
• Phase 2 – IGO has the option to enter into a farm-in and joint venture agreement with ABM to earn a 70% interest in the project by:
? Making a $1M cash payment to ABM or subscribing for $1.5M ABM shares in placement with a 6 month escrow period.
? Spending $6M on exploration on the project over 4 years.
Darren Holden, Managing Director of ABM Resources said, “Independence Group is a top-quality explorer with an excellent track-record of world-class discovery and a perfect partner for ABM at Lake Mackay. Lake Mackay is an exceptional regional project play with some of the most underexplored Proterozoic geology in Australia. By entering into this agreement with Independence Group we are able to see the Lake Mackay Project advance as we maintain our focus on the development of the Old Pirate High-Grade Gold Project.”
Chris Bonwick, Managing Director of Independence Group said, “ABM Resources has put together an excellent package of tenure in one of Australia’s least explored areas. The Independence exploration team is looking forward to getting on the ground and exploring the Lake Mackay tenements for new gold and base metal targets.”