Abcourt Raising up to $5.0 Million for Quebec Gold Projects

The all-in-sustaining cost was forecast to be US$1,120 per ounce.

SEATTLE (Scrap Monster): Abcourt Mines Inc. said it has entered into an agreement in connection with a best efforts private placement financing that aims to raise up to $5.0 million. Proceeds are earmarked for the exploration and advancement of its Flordin and Sleeping Giant gold projects in Quebec.

The company said funding is expected to come from the sale of a minimum of 36.4 million units priced at 5.5 cents each for minimum gross proceeds of $2.0 million, and up to 46.1 million common shares that will qualify as flow-through shares within the meaning of the Income Tax Act of Canada and the Taxation Act of Quebec at a price of 6.5 cents per flow-through share for gross proceeds of $3 million.

Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for $0.08 at any time on or before that date which is 36 months after the closing date of the offering.

The agent will have an option to sell up to an additional $1 million in any combination of units and flow-through shares at the respective offering prices. That option is exercisable in full or in part, for up to 48 hours prior to the closing of the offering, which is expected to occur on November 26, 2024.

Back in April, 2024, Abcourt releases an operational update from its Sleeping Giant mine property in Quebec.

The 100%-owned Sleeping Giant Mine contains a high-grade gold deposit located in the Abitibi Greenstone Belt, 80 kilometres north of Amos.

Abcourt poured and delivered the first dore bar from the Pershing-Manitou bulk sample on April 4, 2024. In the fourth quarter ended June 30, 2024, the company reported gold sales of 345 ounces at an average realized priced of US%1,992 per ounce. This material was recovered from bulk sampling. That compared to 5,545 ounces in 2023.

The company has said the Sleeping Giant mine has strong potential for mineral resource expansion based on more than 800 mineralized structures remaining open at depth, down plunge and to the east.

In June, 2023, the company released the results of a preliminary economic assessment (PEA) which indicated that the project can produce 30,100 ounces annually over a projected mine life of 5.8 years. The total gold produced over that period is expected to be 181,300 ounces, according to the PEA.

The all-in-sustaining cost was forecast to be US$1,120 per ounce.

Abcourt shares advanced on the news, gaining 10% or $0.07 to $0.03. The shares trade in a 52-week range of $0.075 cents and $0.03.

The Flordin property is located approximately 25 kilometres to the north of Lebel-sur-Quevillon, Que. The company recently said stripping on the property has exposed and clearly identified the three historical mineralized zones recognized over 200 metres long by 20 metres wide and which remain open laterally in both directions. Also highlighted is a new fourth zone further south to be confirmed by drilling.

 Courtesy: www.resourceworld.com

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