Abitibi Metals announces $10 million bought deal financing
Abitibi Metals Corp. [AMQ-CSE, AMQFF-OTC, 4KG-FSE) has announced details of a $10 million bought deal financing and said part of the proceeds will be used for continued advancement of the company’s B26 polymetallic deposit.
The Quebec-focused company said an underwriting syndicate has agreed to purchase, on a bought deal basis, 12.5 million charity flow-through shares (FT) common shares, priced at 55 cents per charity flow-through common share, and 12.5 million common shares priced at 28 cents each. The company has granted the underwriters an option to purchase up to an additional 15% of the offering to cover overallotments, if any. That option can be exercised at the offering price for 30 days following closing, which is expected to occur by April 10, 2025.
The gross proceeds from the charity flow-through common shares will be used for continue advancement of the company’s B26 polymetallic deposit and the net proceeds from the common shares will be used for general corporate purposes.
Abitibi shares eased 9.4% or $0.03 to 29 cents. The shares trade in a 52-week range of 68 cents and 20.5 cents.
The company recently said it has satisfied its obligations under a property option agreement with Wallbridge Mining Co. Ltd. [WM-TSX, WC7-FWB] and has earned a 100% right, title and interest in the Beschefer property in Quebec. Beschefer is an advanced gold exploration property consisting of seven claims and covering approximately 962 acres located in the northern Abitibi greenstone belt. It is situated in an orogenic gold setting 45 kilometres northeast of the Casa Berardi mine, 30 kilometres southwest of Wallbridge’s Fenelon gold project, and within seven kilometres of the Abitibi’s B26 polymetallic copper deposit.
Back in November, 2024, Abitibi Metals announced an updated resource estimate and maiden resource for the B26, which hosts an indicated resource of 11.3 million tonnes of 2.13% copper equivalent (CuEq). That amounts to 307.9 million pounds of copper, 316.9 million pounds of zinc, 168,200 ounces of gold and 11.6 million ounces of silver or 532.3 million pounds of CuEq.
On top of that is an interred resource of 7.2 million tonnes of 2.21% CuEq. That amounts to 246 million pounds of copper, 27.3 million pounds of zinc, 200,800 ounces of gold and 1.7 million ounces of silver, or 348.8 million pounds of CuEq.
In November, 2023, Abitibi secured the option to earn an 80% interest in the B26 Deposit from SOQUEM Inc., a subsidiary of Investissement Quebec. Abitibi described the project as one of the most promising mineral discoveries in Quebec, with a current strike length of 1.0 kilometre and depth extent of 0.8 kilometres, open for expansion.
The B26 project covers 3,327 hectares and is located 5.0 kilometres south of the Selbaie mine and about 90 kilometres due west of Matagami.