Boasting a resource with hundreds of millions of pounds of copper, money in the bank and an ideal Canadian location, Abitibi Metals (AMQ.c AMQFF) has quickly emerged as a high potential play having seen its share price increase as much as 600% in the past 3 months.
As detailed in "A Canadian Mining Story Unfolding in Real Time: The Hunt for Critical Metals",AMQ's narrative is "precisely the kind that captivates astute retail investors" given it's tightly held, warrant-free structure with significant insider ownership, and a share count below 100 million:
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Advanced Project: Significant resource at its B26 Project including 400 million pounds of copper and 286,000 ounces of gold, along with notable zinc and silver
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Location: Deposit is located in Quebec, Canada, an area recognized as a favorable mining province, and spans a continuous strike length with strong growth potential
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Experience Management: Management team has substantial experience in mining and capital markets with a proven ability to raise money
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Money's Not an Issue: Raised almost $15M in 2023, proving their ability to finance exploration work in tough markets
The B26 Copper Deposit has never been owned by a public company, thus, substantial real price discovery remains and, as AMQ is fully funded and ready for 2024, should quickly be realized.
According to the 2018 Resource Estimate, the Deposit has an indicated resource of 6.97Mt at 2.94% CuEq and inferred resource of 4.41Mt at 2.97% CuEq.
Spanning ~3,327 hectares with road access and powerlines directly overhead, B26 is located 90km west of Mattagami and 100km north of La Sarre near the former Selbaie Mine
AMQ has a 7 year option to earn 80% from SOQUEM Inc. which includes 9.9% Equity, a $14M work commitment and $400k cash.
Management Team & Capital Structure
"With the key man and his expert team at the helm, and a compelling project in the midst of a copper boom, Abitibi Metals finds itself in a prime position, benefitting from a critical commodity tailwind.
Tightly held by the Deluce Family who commands the majority of the 90M outstanding shares, known for significant contributions to the mining industry, AQM's CEO Jon Deluce is a noteworthy executive who brings a wealth of experience & influence.
With robust financial backing for the venture due to Deluce's success & executive connections to financiers worldwide, AMQ has almost $15M in cash secured through two strategic financings, one of which was upsized following the participation of Frank Giustra and Greg Chamandy joining the investor roster, while avoiding unnecessary dilution.
Demonstrating the immense potential for growth in this story, AMQ experienced a significant surge in value on substantial trading volume following securing the option for B26 deposit. This saw an impressive day-one re-rating of 88%, indicating the substantial impact of this strategic move.
AMQ recently announced its engagement of Forage DCB Drilling of Rouyn-Noranda to complete the near-term maiden drill program for B26. With exceptional mining industry names joining the team, including Shane Williams and Eric Kallio, the program will be led by professional geologist, Martin Demers.
Having brought together a top-notch team for the maiden drill program and to develop to B26, the first phase will consist of a fully funded 30,000m drill program and the crew will mobilize in the coming days to commence the advanced exploration drill program shortly after, as detailed by AMQ CEO, Jon Deluce.
Posted on Behalf of Abitibi Metals Corp.