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Abcourt Mines Inc
Symbol ABI
Shares Issued 276,678,218
Close 2017-12-22 C$ 0.065
Market Cap C$ 17,984,084
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Abcourt Mines closes $994,477 private placement

2017-12-22 16:17 ET - News Release

Mr. Renaud Hinse reports

ABCOURT CLOSES A PRIVATE PLACEMENT OF $ 994,477 IN FLOW- THROUGH SHARES AND COMMON UNITS

Abcourt Mines Inc. has closed a non-brokered private placement for a number of 9,343,852 flow-through shares at a price of 8.5 cent per flow-through share for gross proceeds of $794,227 and a number of 267 units at a price of $750 per unit for gross proceeds of $200,250. Each unit comprises 10,000 common shares of the corporation offered at a price of 7.5 cents per common share and of 5,000 common share purchase warrants, one warrant and 10 cents being required to purchase one common share of the corporation until Dec. 22, 2019.

Therefore, the private placement closed today consists in the sale of 9,343,852 flow-through shares, of 2.67 million common shares and the issuance of 1,335,000 common share purchase warrants. This represents total gross proceeds of $994,477, of which $794,227 shall be incurred by the corporation in exploration expenditures on mining properties located in the Province of Quebec.

In connection with the private placement, finder fees' of $27,475 will be paid to arm's-length finders on some of the subscriptions. The corporation has also issued a total of 261,694 non-transferable common share purchase warrants to finders, each warrant and 10 cents being required to purchase one common share of Abcourt until Dec. 22, 2019.

Certain related parties to Abcourt have participated in the private placement

Renaud Hinse, director and chief executive officer of Abcourt, has purchased one unit (representing 10,000 common shares and 5,000 warrants) and 412,000 flow-through shares. Decochib, a private company controlled by Renaud Hinse, has subscribed for 750,000 flow-through shares. After the private placement, assuming the exercise of the warrants included in the units purchased by Renaud Hinse, Renaud Hinse would hold, directly or indirectly, or exercise control over, approximately 16.4 per cent of the company's common shares issued and outstanding.

Normand Hinse, director of Abcourt, has purchased 67 units (representing 670,000 common shares and 330,000 warrants). After the private placement, assuming the exercise of the warrants included in the units purchased by Normand Hinse, Normand Hinse would hold, directly or indirectly, or exercise control over, approximately 2.8 per cent of the company's common shares issued and outstanding.

The securities issued to the related parties in the private placement constitutes a "related party transaction" within the meaning of National Instrument 61-101 -- Respecting Protection of Minority Security Holders in Special Transactions. In its consideration and approval of the private placement, the board of directors of Abcourt has determined that such subscriptions to the related parties are exempt from the formal valuation and minority approval requirements of National Instrument 61-101 on the basis that the fair market value of these subscriptions to the related parties does not exceed 25 per cent of the market capitalization of Abcourt, in accordance with sections 5.5 and 5.7 of National Instrument 61-101.

All of the securities of Abcourt issued under the private placement are subject to a hold period of four months from the closing date, expiring on April 23, 2018. The private placement is subject to the final approval of the TSX Venture.

About Abcourt Mines Inc.

Abcourt Mines is a gold producer and a Canadian exploration company with strategically located properties in northwestern Quebec, Canada. The Elder property has gold resources (2012) and a positive preliminary economic assessment study.

The Abcourt-Barvue property has silver zinc resources (2014).

In 2016, Abcourt acquired the Sleeping Giant mine and mill, located halfway between Amos and Matagami, in Abitibi, Que., in the territory covered by the Plan Nord of the Quebec government.

Discussions are currently taking place to use the full capacity of the Sleeping Giant mill, with custom ore, thereby reducing the operating cost per tonne treated. This press release was prepared by Renaud Hinse, engineer and president of Abcourt Mines Inc. Renaud Hinse is a qualified person under the terms of National Instrument 43-101.

We seek Safe Harbor.

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