Abcourt Mines Raises $5.25M: A Boost for Gold Projects and Shareholders

Abcourt Mines Inc. (TSX Venture: ABI) (OTCQB: ABMBF) has successfully closed a brokered private placement, raising approximately $5.25 million. The funds will be allocated towards the exploration and advancement of the Company's Flordin and Sleeping Giant gold projects in the Abitibi Greenstone Belt in Québec, as well as for working capital purposes and general corporate purposes. This strategic move is expected to drive growth and enhance shareholder value.

The private placement involved the issuance of 12,943,500 units and 69,878,770 flow-through shares. Each unit consists of one common share and one common share purchase warrant, with a price of $0.08 per warrant. The flow-through shares were priced at $0.065 per share, while the units were sold at $0.055 per unit.

The Company plans to use the proceeds to explore the extensions of the Flordin deposit and potentially increase mineral resources through an exploration campaign in the summer of 2023. The first Mineral Resource Estimate (MRE) for the Flordin Project, conducted by InnovExplo of Val d'Or, estimates 134,700 ounces of Measured and Indicated Resources and 59,700 ounces of Inferred Resources. The private placement proceeds will enable Abcourt to build upon this foundation, potentially leading to increased mineral resources and enhanced shareholder value.



The dilution effect of the private placement can be calculated as follows:

Dilution = (Number of new shares / Total outstanding shares) * 100
= (12,943,500 units + 69,878,770 FT Shares) / (12,943,500 units * 2 + 69,878,770 FT Shares + 115,515,000 existing shares)
= 11.7%

Assuming a pre-placement market capitalization of $60 million, the post-placement market capitalization would be approximately $66.5 million. The stock price may experience a temporary decline due to increased supply, but long-term growth prospects, such as the exploration and advancement of the Flordin and Sleeping Giant gold projects, could offset this dilution and drive shareholder value.

In conclusion, Abcourt Mines' successful private placement of $5.25 million is a significant step towards the exploration and advancement of its gold projects. The Company's strategic allocation of funds is expected to drive growth and enhance shareholder value, despite the temporary dilution effect. As Abcourt continues to build upon its existing mineral resources and explore new opportunities, investors can anticipate a positive outlook for the Company's future.