Not for distribution to U.S. news wire services or dissemination in the United States.
LONDON, Ontario, March 24, 2025 (GLOBE NEWSWIRE) — Abitibi Metals Corp. (CSE: AMQ) (OTCQB: AMQFF) (FSE: FW0) (“Abitibi” or the “Company”) announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to purchase 12,500,000 charity flow-through common shares (the “Charity Flow-Through Common Shares”) at a price of C$0.55 per Charity Flow-Through Common Share and 12,500,000 common shares (the “Common Shares”) at a price of C$0.28 per Common Share, for total gross proceeds of approximately C$10 million (the “Offering”). The Company has granted the underwriters an option, exercisable within 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering at the offering price to cover over-allotments, if any.
Each Charity Flow-Through Common Share will qualify as a “flow-through share” within the meaning of subsection 66(15) of the Canadian Income Tax Act 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 to further develop the Company’s B26 polymetallic deposit, while the net proceeds from the Common Shares will be used for general corporate purposes.
The Charity Flow-Through Common Shares and Common Shares will be offered in all Canadian provinces by way of a short form prospectus and may also be offered by way of private placement in the United States.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Abitibi Metals Corp.
Abitibi Metals Corp. is a Quebec-focused mineral acquisition and exploration company dedicated to developing high-quality base and precious metal properties that are drill-ready with high-upside and expansion potential. Abitibi’s portfolio of strategic properties provides a diverse commodity exposure and includes the option to earn 80% of the high-grade B26 polymetallic deposit, which hosts a resource estimate of 11.3 million tonnes at 2.13% Cu-Eq (Ind) and 7.2 million tonnes at 2.21% Cu-Eq (Inf), and the Beschefer Gold Project, where historical drilling has identified four historical intercepts with a metal factor of over 100 g/t gold, highlighted by 55.63 g/t gold over 5.57 meters and 13.07 g/t gold over 8.75 meters in four modeled zones.
Forward-Looking Statement:
This press release contains certain statements that may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information includes statements that are not based on historical information but refer to future operations, strategies, financial results, or other developments related to Project B26 or otherwise. Forward-looking information is necessarily based on estimates and assumptions that are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond the Company’s control and many of which may change in relation to future business decisions. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Although Abitibi has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events, or results to differ from those anticipated, estimated, or intended. All factors should be carefully considered, and readers should not place undue reliance on Abitibi’s forward-looking information. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “estimates”, “assumes” or variations of such words and phrases (including negative and grammatical variations) or statements that certain actions, events, or results “may”, “could” or “will occur”. Mineral exploration and development are highly speculative and characterized by several inherent risks that may cause the Company to be unable to successfully develop ongoing or planned projects for commercial, technical, political, regulatory, or financial reasons, or that, if successfully developed, may not remain economically viable throughout the life of the mines for reasons including, but not limited to, those mentioned above. There is no guarantee that the Company will be successful in achieving commercial mineral production, and the likelihood of success must be considered in light of the stage of operations.
For more information, please contact Jon Deluce (CEO President, Director) at 226-271-5170, email info@abitibimetals.com or visit https://www.abitibimetals.com.
The original language (usually English) in which the original text is published is the official, authorized and legally valid version. This translation is provided for better understanding. The German version may be shortened or summarized. No responsibility or liability is assumed for the content, correctness, appropriateness or accuracy of this translation. From the translator’s point of view, the message does not constitute a buy or sell recommendation! Please note the English original message at www.sedarplus.ca, www.sec.gov, www.asx.com.au/ or on the company website!
