(TheNewswire)
December 19, 2023 – TheNewswire - London, Ontario – Abitibi Metals Corp. (CSE:AMQ) (OTC:AMQFF) (FSE:4KG) (“Abitibi” or the “Company”), is pleased to announce a non-brokered private placement (the “Offering”) to raise gross proceeds of up to C$4,000,000 through the issuance of up to 5,833,333 common shares of the Company that will be closed before December 29, 2023.
The Offering consists of two parts, a) $3,500,000 of charity flow-through common shares (“CFT Shares”) priced at C$0.70/share for the issuance of 5,000,000 CFT Shares and b) $500,000 of flow-through common shares (“FT Shares”) priced at C$0.60/share for the issuance of 833,333 FT Shares. The FT Shares and CFT Shares will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”)).
Jonathon Deluce, CEO of Abitibi Metals, stated, “We are very grateful for the support Abitibi Metals has received from new and past shareholders. The closing of this financing, in conjunction with the recent financing where we welcomed strategic investors, will bring our treasury to over nine million dollars and put us in a position to execute a significantly expanded and more aggressive drill campaign in 2024 as we will be fully funded to drill over 20,000 metres.”
Mr. Deluce continued: “Our objective in the upcoming year will be to build on the previous 115,311 metres drilled to delineate the open-pit potential of the B26 deposit, while concurrently advancing and expanding the existing underground resource as we progress towards our goal of delivering a robust economic high-grade copper resource. Drilling is anticipated to commence in January, and the Company will provide an update shortly to detail the plans for its fully funded phase one drill program.”
The gross proceeds from the Flow-Through Offering and Charity Flow-Through Offering will be used to incur "Canadian exploration expenses" that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) related to the Company’s projects in Québec.
Finder’s fees in cash or securities may be paid on gross proceeds of the financing, as permitted by securities laws.
The securities issued in connection with the Offering are subject to the Company’s filing requirements with the Canadian Securities Exchange, and all securities will be subject to a four-month statutory hold period after closing.
About Abitibi Metals Corp.:
Abitibi Metals Corp. is a Quebec-focused mineral acquisition and exploration company focused on the development of quality base and precious metal properties that are drill-ready with high-upside and expansion potential. Abitibi’s portfolio of strategic properties provides target-rich diversification and includes the high-grade B26 Polymetallic Copper Deposit (Ind: 7.0MT @ 2.94% Cu Eq & Inf: 4.4MT @ 2.97% Cu Eq) and the Beschefer Gold Project, where historical drilling has identified 4 historical intercepts with a metal factor of over 100 g/t gold highlighted by 55.63 g/t gold over 5.57 metres and 13.07 g/t gold over 8.75 metres amongst four modelled zones.
ON BEHALF OF THE BOARD
Jonathon Deluce, Chief Executive Officer
For more information, please call 226-271-5170, email info@abitibimetals.com, or visit https://www.abitibimetals.com.
The Company also maintains an active presence on various social media platforms to keep stakeholders and the general public informed and encourages shareholders and interested parties to follow and engage with the Company through the following channels to stay updated with the latest news, industry insights, and corporate announcements:
Twitter: https://twitter.com/AbitibiMetals
LinkedIn: https://www.linkedin.com/company/abitibi-metals-corp-amq-c/
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statement:
This news release contains certain statements, which may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information involves statements that are not based on historical information but rather relate to future operations, strategies, financing plans, financial results or other developments on the B26 Project or otherwise. Forward-looking information is necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control and many of which, regarding future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by or on the Company’s behalf. Although Abitibi has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. All factors should be considered carefully, and readers should not place undue reliance on Abitibi’s forward-looking information. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects,” “estimates,” “anticipates,” or variations of such words and phrases (including negative and grammatical variations) or statements that certain actions, events or results “may,” “could,” “might” or “occur. Mineral exploration and development are highly speculative and are characterized by a number of significant inherent risks, which may result in the inability of the Company to successfully develop current or proposed projects for commercial, technical, political, regulatory or financial reasons, or if successfully developed, may not remain economically viable for their mine life owing to any of the foregoing reasons, among others. There is no assurance that the Company will be successful in achieving commercial mineral production and the likelihood of success must be considered in light of the stage of operations.
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