Gold major St Barbara stumps up $4m for stake in junior explorer
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Gold major St Barbara has taken a 10 per cent stake in ABM Resources, injecting $4.4 million into the junior gold explorer.
The move is part of a growing trend of larger producers taking positions in smaller explorers — essentially as their exploration arms.
ABM’s shares were up 9.5 per cent at 11.5c on Thursday morning following the news.
St Barbara’s strategy is to take strategic positions in exploration companies or joint ventures to strengthen its balance sheet and where there is good potential for resource discovery.
A spokesperson told Stockhead that St Barbara was attracted to the “exceptional quality” of ABM’s tenement position in the proven multi-million-ounce Tanami gold district in the Northern Territory.
St Barbara also has stakes in NSW base metals explorer Peel Resources and Victoria-focused gold play Catalyst Metals.
The producer is continuing to look for further early stage exploration tie-ups, focusing on explorers with positions in established, proven Australian mining provinces.