Yesterday, Abitibi Metals (AMQ.c AMQFF) announced the final upsize of its previously announced private placement to $7.1M fully allocated due to overwhelming interest.
Jonathon Deluce, CEO of Abitibi Metals, stated,
“We are pleased to announce the final upsize of this strategic financing. With a treasury of approximately $19 million on closing, Abitibi is in a unique position of strength in a challenging market, as we will be fully funded through 2025 to execute a 50,000-metre drill program and be in a position to deliver a PEA at the B26 Deposit. As both a passionate mining entrepreneur and investor, building compelling stories excites me, and I am grateful for the support Abitibi has received, which will enable us to successfully close the funds needed for a seven-year option within only four months. I believe 2024 is the beginning of a strong macroeconomic environment for gold and copper where high-grade growth stories like ours can flourish.”
Furthermore, Jim Deluce, Chairman of the Board and Largest Shareholder commented,
“I am incredibly proud of what the team has accomplished in a challenging economic climate, raising over $21 million in 4 months to successfully secure our 80% earn-in across what was supposed to be a 7-year option. When Jonathon was appointed as CEO, he was challenged by the board to identify an asset with significant growth potential, something he very capably accomplished through the acquisition of the Beschefer Gold Project, where we drilled 4.92 grams per ton gold over 28.65 metres1, including 11.39 g/t Au over 9.1 metres1, a project we very much look forward to returning to in the near future.”
AMQ has only just started to unlock its potential and, with a robust treasury, an incredible corporate and technical team, world-class advisory team, the company has a stong foundation to build from.
Significantly, this is the second upsizing of AMQ's private placement which originally began as a $3M financing, prior to its first upsizing, led by the Deluce family, to $5M.
The High-Grade Polymetallic Copper Deposit
Located amid copper's rally to its highest level in 14 months, the B26 Deposit is a new high-grade polymetallic copper deposit in Quebec's Abitibi Greenstone Belt with an indicated resource of 6.9MT @ 2.94% Cu Eq and an inferred resource of 4.41MT @ 2.97% Cu Eq.
AMQ is in the process of completing its winter drill program with 8,839m completed across 29 holes for the first phase of a fully funded 30,000m field season.
With the number one priority to test the open pit, AMQ's key targets will test the extension and expansion potential as well as test the system at depth.
Targeting the completion of over 12,000m across three priority targets by the end of March for the first phase, a recently secured third rig is focused on advancing drilling at AMQ's priority target, the "Eastern Extension", an extension of the main deposit where 2.32% Cu Eq over 89.5 metres*, including 3.98% CuEq over 22.5 metres was intercepted in historical drilling.
With the first phase of drilling demonstrating the robust nature of the B26 Deposit, AMQ has established a solid foundation and technical vision for a 3D model, resource expansion and the de-risking of the project.
In the context of the global energy transition, copper plays a crucial role as decarbonization cannot occur without it, however, while the core technology involving copper is not changing, the demand for the metal is surging to an unprecedented volume.
Investment in the clean energy sector is also on the rise. Globally, approximately $1.8 trillion was invested in the energy transition last year. With around $630 billion allocated to electrified transportation.
Moreover, the growing global demand for electricity will strain electric grids, necessitating significant upgrades. Despite this, the supply side faces a copper deficit which is expected to persist throughout the energy transition.
To meet demand, efforts must focus on discovering new sources of copper.
Boasting a tightly held, warrant-free structure with significant insider ownership and a share count below 100M, AMQ's narrative is clear amid this dynamic market with a catalyst filled 2024. With results and assays still pending from this drill program, AMQ plans to regularly communicate with investors, anticipating providing multiple updates over the next three months.
Posted on Behalf of Abitibi Metals Corp.