Abitibi Metals Corp. [AMQ-CSE, AMQFF-OTC, 4KG-FSE) shares advanced Thursday on news that the company expects to raise $5 million from an upsized non-brokered private placement financing. That’s up from the earlier $3 million target.
The shares rose 5.5% or $0.02 to 38 cents and currently trade in a 52-week range of 60 cents and 11 cents.
“We are pleased to announce the upsize of this strategic financing to be led by the Deluce family,’’ said Abitibi Metals CEO Jonathon Deluce, (management and associates currently own 60% of the 98 million shares outstanding). “With the success of our on-going maiden drill program, this financing will position Abitibi to execute on a series of strategic objectives and accelerate the company’s plan to earn up to 80% of the B26 Deposit.’’
Upon closing, Abitibi will have a budget of $15 million over 2024 and 2025, and fulfill 7.0 years worth of work commitments in two years. The funds raised will allow the company to drill approximately 50,000 metres at the B26 Deposit
Abitibi Metals is a Quebec-focused mineral acquisition and exploration company. Its portfolio includes the B26 Polymetallic Copper Deposit in southwestern Quebec and the Beschefer Gold Project.
The upsized offering will consist of 5.81 million charity flow-through common shares priced at 86 cents per share. It will close on April 9, 2024 and has been fully allocated. The shares will qualify as “flow-through shares” within the meaning of the Income Tax Act (Canada).
The B26 Polymetallic Copper Project covers 3,327 hectares and is located 5.0 kilometres south of the Selbaie mine and about 90 kilometres due west of Matagami. Under an agreement with SOQUEM Inc., Abitibi holds a 7.0-year option to earn an 80% stake in the project.
The project contains an indicated resource of 6.97 million tonnes of 2.94% copper equivalent (CuEQ) (1.32% copper, 1.80% zinc, 0.60 g/t gold, and 43 g/t silver). On top of that is an inferred resource of 4.41 million tonnes of 2.97% CuEq (2.03% copper, 0.22% zinc, 1.07 g/t gold and 9.0 g/t silver).
The B26 mineralization is composed of a stacking of massive polymetallic and semi-massive polymetallic sulfide lenses extending over a kilometric strike length within a strongly dipping basin filled by felsic volcanism products.
At the Beschefer Gold Project, historical drilling has identified four historic 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.
The Beschefer Project is located 30 kilometres southwest of Wallbridge Mining Co. Ltd.’s [WM-TSX, WC7-FWB] 100%-owned Fenelon gold property and has been described as Abitibi’s flagship project going forward. Under an agreement with Wallbridge, Abitibi can earn a 100% interest in the project, after agreeing to exercise the 4.0-year option by delivering on $3 million worth of work commitments and issuing 4.0 million shares.
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