ABM GOLD FILES FOR INITIAL OFFERING
ABM Gold Corp said it has filed with
the U.S. Securities and Exchange Commission for an initial
public offering of six mln Class A common shares at an expected
price of seven to nine U.S. dlrs each through underwriters led
by PaineWebber Group Inc <PWJ> and Advest Group Inc <ADV>.
    The company said it will use about 30.6 mln dlrs of the
proceeds to buy from Sonora Gold Corp <SONNF> 5,456,000 Sonora
shares at 5.60 U.S. dlrs each, and Sonora will use about 25.0
mln dlrs of its proceeds from that deal to buy 9,259,000 shares
of <Goldenbell Resources Inc> at 2.70 dlrs each.
    ABM Gold said Sonora will use the 5,553,600 dlrs remaining
to repay short-term debt and for working capital, and
Goldenbell will use its own proceeds from the sale of shares to
Sonora to provide about half the financing needed to complete
the construction of production facilitiues for a property.
    ABM said it will use another 8,120,000 dlrs of its proceeds
to buy <New Jersey Zinc Exploration Co>'s 15 pct interest in
net operating profits derived from some Sonora properties.  ABM
said it will trade this interest for 1,234,042 Sonoira shares
valued at 6.58 dlrs each.
    ABM Gold said it will use another 2,825,370 dlrs of the
proceeds to buy from <United Gold Corp> 1,053,000 United common
shares at 2,29 dlrs each and exercise a warrant to buy another
two mln common shares at 20.7 cts per share, with United to use
its proceeds to fund exploration.
    ABM gold manages and develops properties for Sonora,
Goldenbell, United and Inca Resources Inc <INCRF>.
 Reuter
