Aben Resources closes $4.27-million private placement

Aug 22, 2018

2018-08-21 15:05 ET – News Release

Mr. James Pettit reports

ABEN CLOSES $4.28 MILLION PRIVATE PLACEMENT FINANCING LED BY ERIC SPROTT

Aben Resources Ltd. has closed its previously announced non-brokered private placement financing (see news release dated Aug. 15, 2018) for aggregate gross proceeds of approximately $4.28-million. The company intends to utilize the proceeds from this financing for its continuing 2018 exploration and drilling program at its Forrest Kerr gold project located in British Columbia’s Golden Triangle region and for general working capital purposes.

The company has issued 14,264,967 units at a price of 30 cents per unit for gross proceeds of $4,279,490. Each unit consists of one common share of the company and one share purchase warrant entitling the holder to purchase an additional common share at a price of 45 cents for a period of two years expiring Aug. 21, 2020.

Approximately 4.78 million warrants have been exercised since May 31, 2018, raising an additional $791,219 in net proceeds for the company.

The company’s president and chief executive officer, Jim Pettit, stated: “With the closing of this financing, we are pleased to welcome Eric Sprott as a large, strategic shareholder of Aben. The company is well positioned with over $6-million in the treasury to expand the 2018 drill program at its flagship Forrest Kerr gold project. Additional drilling is warranted on the back of the results from the first drill hole in the program at the newly discovered North Boundary zone, which intersected four separate high-grade intervals, including 62.4 grams per tonne gold over 6.0 metres within 38.7 grams per tonne gold over 10.0 metres from 114.0 to 124.0 metres. Aben has now completed 4,850 metres of drilling in 16 holes and is awaiting assay results. The majority of these holes were drilled at the North Boundary zone, and the company will provide updates as results become available.”

As of the date hereof, after giving effect to this acquisition, Mr. Sprott beneficially owns and controls 6,666,667 shares and 6,666,667 warrants of Aben, representing approximately 6.6 per cent of the issued and outstanding shares on a non-diluted basis and approximately 12.5 per cent on a partially diluted basis. Prior to the date hereof, Mr. Sprott did not beneficially own any securities of Aben.

The units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Aben either on the open market or through private acquisitions or sell securities of Aben either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.

In connection with part of this offering, the company paid $237,999.29 in cash finders’ fees and issued 793,331 finder warrants to qualified arm’s-length finders. Each finder warrant entitles the holder to acquire one additional share at an exercise price of 45 cents for a period of two years expiring Aug. 21, 2020. Four directors of the company subscribed for 175,000 units of the offering.

The securities issued pursuant to the offering and any shares issuable upon the exercise of warrants will be subject to a statutory four-month-and-one-day hold period expiring Dec. 22, 2018.

Cornell McDowell, PGeo, vice-president of exploration of Aben Resources, has reviewed and approved the technical aspects of this news release and is the qualified person as defined by National Instrument 43-101.

About Aben Resources Ltd.

is a Canadian gold exploration company developing projects in British Columbia’s Golden Triangle, Yukon and Saskatchewan. The company is actively exploring its flagship and high-grade Forrest Kerr project located in the Golden Triangle region, where recent drilling has discovered strong precious metal and base metal mineralization at the North Boundary zone.

We seek Safe Harbor.

https://www.abenresources.com/news-releases/2018/