Abcourt Closes Private Placement of Debenture and Equity to Restart Sleeping Giant Mine
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ROUYN-NORANDA, Quebec, June 26, 2025 (GLOBE NEWSWIRE) -- Abcourt Mines Inc. ("Abcourt" or the "Corporation") (TSXV:ABI) (OTCQB:ABMBF) is pleased to announce that it has closed its previously announced non-brokered private placement of secured convertible debenture (the "Debenture") for gross proceeds of $3,000,000 (the "Debenture Offering").
Debenture Offering
The Debenture will bear interest at the Term SOFR plus 10%, per annum, and will mature four years following the date of issuance. The principal amount of the Debenture (the "Principal Amount") is convertible into common shares of the Corporation (each a "Share") at a conversion price of $0.05 per Share during the first year, and at a conversion price of $0.10 per Share during the following years at any time at the option of the holder. All interest accrued on the Debenture will be payable in cash. The Corporation may prepay the Debenture at any time prior to the Maturity Date, without penalty.
The Debenture was purchased by François Mestrallet, director of the Corporation. As a result, the Debenture Offering is a "related party transaction" within the meaning of Multilateral Instrument 61– 101 - Protection of Minority Security Holders in Special Transactions ("MI 61–101"). See the Corporation's news release dated June 18, 2025 for details of the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 that the Corporation has relied upon.
Equity Offering
The Corporation also closed a tranche of its previously announced non-brokered equity financing for gross proceeds of $1,056,000, consisting of the sale of 21,120,000 units of the Corporation (the "Units") at a price of $0.05 per Unit (the "Private Placement").
Each Unit consists of Share of the Corporation and one share purchase warrant (a "Unit Warrant"). Each Unit Warrant entitles its holder to purchase one Share at a price of $0.08 until June 26, 2028 (the "Expiry Date"), subject to acceleration of the Expiry Date in certain circumstances.
All securities issued in connection with the Debenture Offering and the Private Placement are subject to a restricted period under applicable securities laws, ending on the date that is four months plus one day following the date of their issuance.
These securities have not been, nor will they ...
