July 3, 2020 – TheNewswire – London, Ontario – Abitibi Metals Corp. (CSE:GSK) (CNSX:GSK.CN) (“Goldseek” or the “Company”) is pleased to report that the Company has raised $1,142,100 in aggregate of non-flow-through funds and flow-through funds by way of a non-brokered private placement.
The Company has issued 1,295,000 Quebec flow-through units (each a “Quebec FT Unit”) at the price of $0.30 for gross proceeds of $323,750, 1,385,185 national flow-through units (each a “FT Unit”) at the price of $0.27 for gross proceeds of $373,600 and 1,520,000 non-flow-through units (each a “Unit”) at a price of $0.25 per unit for gross proceeds of $380,000. Each Quebec FT Unit and FT Unit is comprised of one common share, which is a “flow-through” share for Canadian income tax purposes and one-half of one warrant (each whole, being a “Warrant”) exercisable at $0.50 per share until two years after closing. Each non-flow-through Unit is comprised of one common share and one-half of one Warrant exercisable at $0.50 per share until two years after closing. The Warrants are subject to accelerated expiry as described in the Company’s June 10, 2020 news release.
In connection with the completion of the private placement, the Company paid a finder’s fee consisting of $55,181 and the issuance of 88,200 warrants exercisable at $0.30 per share, 13,300 warrants exercisable at $0.27 per share and 98,000 warrants exercisable at $0.25 per share until three years after closing
Officers of the Company acquired Units in the aggregate principal amount of $250,000 under the Offering, thereby making a portion of the Offering a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Because the common shares of the Company trade on the Canadian Securities Exchange, the private placement is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(a) of MI 61-101.
All securities issued in connection with the private placement are subject to a statutory hold period expiring four months and one day from closing.
About Abitibi Metals Corp.
Abitibi Metals Corp. is a Canadian exploration company with a portfolio of assets in Ontario and Quebec, Canada. By identifying four projects in world-class mining locations, Goldseek is poised to deliver shareholder value through rigorous exploration and development on these properties. Our mission is to find the next major discovery in the mining camps of Urban Barry, Quevillon and Detour Gold Trend in Quebec and Hemlo in Ontario.
ON BEHALF OF THE BOARD
Jonathon Deluce
Chief Executive Officer
Telephone: 226-271-5170
For more information, please contact:
Abitibi Metals Corp.
E-mail: goldseekresources@gmail.com
The reader is invited to visit Goldseek’s web site https://www.goldseekresources.com/
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.