Aben Resources Ltd. [ABN-TSXV; ABNAF-OTCQB; E2L2-FSE] said Wednesday August 15 that it is moving to raise $4 million via a private placement led by Bay Street gold bug Eric Sprott.
The company said the funds are being raised through a non-brokered private placement of up to 13.3 million units priced at 30 cents each. Each unit will consist of one common share and a warrant good to buy an additional share at 45 cents for two years from the dates that the units are issued.
The lead order is from Eric Sprott, who will subscribe for 6,666,667 million units, the company said. Additionally, Palisade Global Investments will subscribe for 2.75 million units and Venture Ad Network will subscribe for an additional 600,000 units.
Aben was active on the news, easing 3.85% or $0.015 to 37.5 cents in early afternoon trading on Wednesday. The 52-week range is 11 cents and 49.5 cents.
It will use proceeds of the private placement to expand its 2018 exploration and drilling program on the Forrest Kerr Gold Project in northwest British Columbia’s Golden Triangle region.
In a press release on August 9, 2018, the company said drilling has intersected multiple high-grade zones at Forrest Kerr.
Hole FK18-10, the first of eight holes to be drilled this year, has intersected four separate high-grade zones, with the best zone returning 38.7 g/t gold over 10 metres, including 62.4 g/t gold over 6.0 metres, starting at 114 metres down-hole.
The company is drilling in an area where it has discovered strong precious and base metal mineralization at the North Boundary Zone.
Aben CEO Jim Pettit recently said the high-grade gold and base metal values in the first hole of the 2018 drill hole program far exceeded the company’s expectations. He also said these results confirm the presence of a strong and robust mineralizing system at the recently discovered North Boundary Zone.
Forrest Kerr covers 23,000 hectares and is Aben’s flagship property. It is located in the Golden Triangle, a region that hosts many significant mineral deposits, including Brucejack, Eskay Creek, Snip, Galore Creek, Copper Canyon, Schaft Creek, Red Chris and others.
Aben Chairman Ron Netolitzky was involved in the discovery of the Eskay and Snip mines in the Golden Triangle and was named Canadian Prospector of the Year in 1990.
Aben can earn a 100% interest over the entire claim group by spending $3 million on exploration by June, 2020.
“We are now looking at an area that extends 230 metres south to the historic high-grade Noranda drill hole from 1991 and although the geology is complex, we believe more drilling will delineate additional high grade mineralization,” Pettit said.