Abitibi Metals raises $10 million for B26 polymetallic drilling

Abitibi Metals Corp. [AMQ-CSE, AMQFF-OTC, 4KG-FSE) said Friday it has raised $10 million from a non-brokered private placement financing. “With a treasury of over fifteen million, Abitibi is now positioned to commence on the most aggressive drill program our company has embarked on to date, with 30,000 metres fully funded for 2024,’’ said Abitibi CEO Jonathon Deluce.

Abitibi Metals is a Quebec-focused mineral acquisition and exploration company. Its portfolio includes the B26 Polymetallic Copper Deposit and the Beschefer Gold Project.

Under the private placement, Abitibi issued 13.6 million charity flow-through common shares priced at 70 cents per CFT share, and 833,333 flow-through common shares priced at 60 cents per flow-through share.

“The closing of the financing secures Abitibi’s future with the high-grade B26 Polymetallic Copper Project [southwestern Quebec] as we will complete the work requirements of our first four-year option within the first year, three years ahead of schedule,” Deluce said.

The property 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.

The nearest infrastructure is Hecla Mining’s [HL-NYSE] Casa Berardi mine, about 60 kilometres away.

“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,’’ Deluce said. “Drilling is anticipated to commence shortly in January, and the company will provide an update shortly to detail plans for its fully funded phase one drill program.’’

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.

Abitibi Metals shares were unchanged Friday at 46 cents. The shares trade in a 52-week range of 46 cents and 11 cents.