Abitibi secures Discovery Silver as strategic investor in latest placement
Frankfurt- and Canada-listed Abitibi Metals Corporation has announced a non-brokered strategic private placement to raise up to C$30.7-million from the issue of 35-million hard dollar common shares and 11.7-million charity flow-through common shares.
In this regard, Toronto-listed Discovery Silver Corporation is expected to acquire about 9.9% of the issued and outstanding common shares of Abitibi on a non-diluted basis upon closing of the offering.
The companies will then enter into a participation agreement whereby Abitibi will grant certain financing and other participation rights to enable Discovery to maintain its shareholding in Abitibi and other customary investor rights.
“We are pleased to welcome Discovery Silver as a strategic investor in the company. Their participation represents a strong endorsement of the progress and potential of the B26 Deposit.
“They have established a strong track record of generating shareholder returns through disciplined exploration, operational excellence, and the early identification of high-quality opportunities,” says Abitibi CEO and president Jonathon Deluce.
He adds that company values its newest partner’s technical experience as it continues to advance exploration programmes and development of B26, while also pursuing growth opportunities within the existing portfolio and through potential acquisitions.
B26 is a high-grade polymetallic deposit in the prolific Abitibi Greenstone Belt, in Quebec, which an estimated resource of 25.3-million tonnes of copper grading 2.1% (equivalent). The deposit is believed to contain 775-million pounds of copper, 451 000 oz of gold and notable zinc and silver credits.
This deposit stands as a foundational asset in supporting Quebec’s critical metals future.
