Abitibi Metals Corp (CSE:AMQ, OTC:AMQFF) has announced a non-brokered, private placement will be upsized to raise C$5 million.
Abitibi said on Thursday that C$5 million would be raised through the issue of 5,813,953 common shares, having previously planned to generate C$3 million by selling 3,488,372 shares.
"We are pleased to announce the upsize of this strategic financing to be led by the Deluce family,” chief executive Jonathon Deluce said in a statement.
"With the success of our ongoing maiden drill program, this financing will position Abitibi to execute on a series of strategic objectives."
This will also see the company accelerate its plan to earn to up to 80% through options on the high-grade B26 polymetallic deposit in Quebec.
The shares will be issued at a price of C$0.86 each, with the now fully allocated placement set to close before Tuesday, April 9.
Proceeds from these charity flow-through common shares will be used to cover mining expenses in relation to Abitibi’s projects in Quebec.
Deluce added Abitibi would have an exploration budget of C$15 million covering the next two years following the placement's close.
"This financing will allow Abitibi to drill approximately 50,000 metres at the B26 Deposit," he said, "we greatly appreciate the opportunity to showcase all the great exploration work done [...] and the opportunity to advance this deposit aggressively".
Eventus Capital Corp was appointed as a finder in connection to the offering and may be paid a fee for doing so, with the issued shares set to be subject to a four-month statutory hold period after the placement closes.