Mining
Monday, December 18th, 2023 4:56 pm EDT
Key Points
- Successful Private Placement: Abitibi Metals Corp. has successfully closed a non-brokered private placement, raising $4,377,850 through the issuance of 14,592,834 common shares at a price of 30 cents per share. Lead orders for the placement came from notable investors, including Frank Giustra, Greg Chamandy, and other strategic investors.
- Strategic Investors and Endorsement: Greg Chamandy, one of the strategic investors, expressed excitement about supporting Abitibi Metals and its exploration endeavors in the renowned Abitibi greenstone belt. Chamandy praised Jonathon Deluce, the CEO of Abitibi, as a young mining entrepreneur with exceptional potential. The strategic investment by Chamandy and Frank Giustra, both distinguished entrepreneurs in the mining sector, is seen as a valuable endorsement of Abitibi Metals’ growth potential. Jonathon Deluce acknowledged the contributions of these investors and expressed pride in welcoming them on board.
- Focused Exploration Plan: Abitibi Metals is well-positioned to execute its exploration plan in 2024, targeting growth and discovery at the high-grade B26 polymetallic copper project and the Beschefer gold project. The company aims to be the first public company to initiate a drill program on the B26 polymetallic copper deposit since its discovery in 1997. The exploration program, set to commence in January, will be a key focus, and the net proceeds from the offering will be utilized for exploration on the company’s mineral properties and general administration expenses.
Abitibi Metals Corp., further to its news releases on Dec. 4 and Dec. 5, 2023, has closed its non-brokered private placement of $4,377,850 through the issuance of 14,592,834 common shares at a price of 30 cents per share, with lead orders from Frank Giustra, Greg Chamandy and other strategic investors.
Mr. Chamandy commented: “I am thrilled to be a strategic investor in Abitibi Metals and help Jon develop these assets in the renowned Abitibi greenstone belt. Building the high-grade B26 deposit and the Beschefer projects will be exciting as we work to deliver the next generation of gold and copper assets in Quebec. Jon’s leadership has positioned the company to carry out its exploration plan in 2024 confidently. It is early days, but I believe the growth potential here is exceptional. I am very excited to support a young mining entrepreneur of Jon’s calibre as he builds Abitibi into the next major Canadian metals exploration company.”
Jonathon Deluce, chief executive officer of Abitibi, commented: “I am incredibly proud to welcome Greg Chamandy and Frank Giustra as strategic investors in Abitibi Metals. These distinguished entrepreneurs have contributed immense value to several exceptional mining companies during their careers. We are also delighted to welcome our other strategic investors and thank everyone for their support. The company is now well positioned to carry out its 2024 exploration program, aimed at growth and discovery at the high-grade B26 polymetallic copper project and the Beschefer gold project.”
Mr. Deluce continued: “We are excited to be the first public company to initiate a drill program on the B26 polymetallic copper deposit since its discovery in 1997, where over 115,311 metres have already been drilled. We will provide an update over the coming weeks to outline our phase 1 drill program, which we plan to commence in January.”
The company intends to use the net proceeds of the offering to conduct exploration on the company’s mineral properties and for general and administration expenses.
A finder’s fee of $9,450 cash and 31,500 finder’s warrants (the ” Finder’s Warrants “) was paid to one registrant in connection with the private placement. The Finder’s Warrants are exercisable at $0.30 per Share for a period of two years from the closing date of the Offering.
All securities issued are subject to a four-month and one-day hold period pursuant to securities laws in Canada, expiring on April 16, 2024.
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.
We seek Safe Harbor.
