Abitibi Metals Corp (CSE:AMQ, OTC:AMQFF) announced the upsize of its non-brokered private placement to C$7.1 million, a move attributed to the overwhelming interest from investors.
The offering, which was originally set to raise $5 million, will now consist of up to 10,702,627 common shares of the junior resource company.
"With a treasury of approximately $19 million on closing, Abitibi is in a unique position of strength in a challenging market, as we will be fully funded through 2025 to execute a 50,000-metre drill program and be in a position to deliver a PEA at the B26 Deposit,” Jonathon Deluce, CEO of Abitibi Metals said in a statement.
Deluce, known for his passion for mining entrepreneurship, emphasized the significance of the support received, enabling the company to achieve its financing goals swiftly. He further highlighted the promising outlook for gold and copper markets in 2024, foreseeing ample opportunities for growth-oriented stories like Abitibi's.
The offering encompasses two segments: charity flow through shares priced at C$0.86 per share for gross proceeds of $5,109,021.78 and $2,000,000 of common shares priced at C$0.42/share.
Proceeds will be allocated towards specific purposes, including Canadian exploration expenses and general administrative needs.
Jim Deluce, chairman of the board and largest shareholder of Abitibi Metals, noted that the team had raised over $21 million in four months to successfully secure its 80% earn-in.
“When Jonathon was appointed as CEO, he was challenged by the board to identify an asset with significant growth potential, something he very capably accomplished through the acquisition of the Beschefer Gold Project,” the chairman said.
Drill results from the project have returned 4.92 grams per ton gold over 28.65 metres, including 11.39 g/t Au over 9.1 metres.
Deluce commended the rapid acquisition of assets and successful fundraising efforts, positioning the company for substantial growth in the near term.
The offering is expected to close on April 9.