Sonora gold group getting major funds

Vancouver-based ABM Gold Corp. is raising major financing in the United States for the further financing of four closely associated listed Canadian companies within its fold — Sonora Gold Corp., Goldenbell Resources Inc., United Gold Corp. and Inca Resources. It is making an initial public offering there of 6,000,000 Class A common shares through an underwriting group led by Pain Webber Inc. and Avest Inc. at a price between $7 and $9 per share.

$30,553,600 of this will be used to purchase 5,456,000 shares of Sonora at $5.60(US) of which Sonora will use $25 million to purchase 9,259,000 shares of Goldenbell at $2.70.

$8,120,000 is earmarked for the purchase of New Jersey Zinc’s 15% retained profit interest in certain of Sonora’s properties. ABM will exchange this interest at cost for 1,234,042 shares of Sonora at $6.58 per share.

Another $2,825,370 will be used to purchase 1,053,000 shares of United Gold (vse) at $2.29.