Abitibi Metals arranges $10-million financing
2025-03-24 18:34 ET – News Release
Mr. Jon Deluce reports
ABITIBI METALS ANNOUNCES C$10 MILLION BOUGHT DEAL FINANCING
Abitibi Metals Corp. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy, on bought deal basis, 12.5 million charity flow-through (FT) common shares, at a price of 55 cents per charity flow-through common share, and 12.5 million common shares, at a price of 28 cents per common share, for total gross proceeds of approximately $10-million. The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the offering to cover overallotments, if any.
Each charity flow-through common share will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and, in respect of eligible Quebec resident subscribers, Section 359.1 of the Taxation Act (Quebec).
The offering is expected to close on or about April 10, 2025, and is subject to Abitibi receiving all necessary regulatory approvals.
The gross proceeds from the charity flow-through common shares will be used for continued advancement of the company’s B26 polymetallic deposit and the net proceeds from the common shares for general corporate purposes.
The charity flow-through common shares and common shares will be offered by way of a short form prospectus in all of the provinces of Canada and may also be offered by way of private placement in the United States.
About Abitibi Metals Corp.
Abitibi Metals 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 option to earn 80 per cent of the high-grade B26 polymetallic deposit, which hosts a resource estimate of 11.3 million tonnes at 2.13 per cent copper equivalent (CuEq) (indicated) and 7.2 million tonnes at 2.21 per cent CuEq (inferred), and the Beschefer gold project, where historical drilling has identified four historical intercepts with a metal factor of over 100 grams per tonne (g/t) gold, highlighted by 55.63 g/t gold over 5.57 metres and 13.07 g/t gold over 8.75 metres, among four modelled zones.
We seek Safe Harbor.
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