UPDATE 1-Abacus Mining, KGHM enter into mine development JV

* KGHM to own 51 pct of joint venture

* To invest C$4.5 mln immediately

* To invest another $37 mln at transaction close

* KGHM has option to own 80 pct total stake in JV

* Abacus shares shed as much as 17 pct

May 4 (BestGrowthStock) – Abacus Mining & Exploration Corp (AME.V: )
said it entered into a joint venture agreement with copper
producer KGHM (KGHM.WA: ), to develop its mine at the Afton-Ajax
copper-gold project in Kamloops, British Columbia.

Shares of the Vancouver, British Columbia-based Abacus shed
as much as 17 percent of their value in morning trade, before
paring some losses to trade at 30 Canadian cents on the Toronto
Venture Exchange.

Under the terms, KGHM will immediately enter into a C$4.5
million private share placement in the capital of Abacus at 30
Canadian cents per share.

Abacus said KGHM will also invest a further $37.0 million
through a bankable feasibility study to gain a 51 percent share
in the project.

KGHM also has the option to acquire another 29 percent for
a maximum of $35 million — giving it an 80 percent stake in
the venture — after the feasibility study is completed, Abacus
said in a statement.

The company said the transaction is expected to close no
later than Sept. 30.

“We anticipate that from this collaborative relationship
will flow a number of other prospective copper projects in
Canada and elsewhere, to meet our growing production profile,”
said Herbert Wirth, president of KGHM.

Stock Market News

(Reporting by Abhiram Nandakumar in Bangalore; Editing by
Jarshad Kakkrakandy)

UPDATE 1-Abacus Mining, KGHM enter into mine development JV