Mr. Renaud Hinse reports
ABCOURT CLOSES A PRIVATE PLACEMENT OF $838,487 IN FLOW-THROUGH SHARES AND COMMON UNITS
Abcourt Mines Inc.
has closed a non-brokered private placement for a number of
10,264,100 flow-through shares at a price of seven cents per flow-through share for gross proceeds of $718,487 and 200 units at a price of $600 per unit for gross proceeds of $120,000. Each unit comprises 10,000 common shares of the corporation offered at a price of six 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. 31, 2020.
Therefore, the private placement closed today consists of the sale of 10,264,100 flow-through shares, of two million common shares and the issuance of one million common share purchase warrants. This represents total gross proceeds of $838,487, of which $718,487 shall be incurred by the corporation in exploration expenditures on exploration mining properties located in the province of Quebec.
In connection with the private placement, finder's fees of $26,238.75 will be paid to an arm's-length finder on some of the subscriptions. The corporation will also issue 380,768 non-transferable common share purchase warrants to the finder, each warrant and 10 cents being required to purchase one common share of Abcourt until Dec. 31, 2019.
Certain related parties to Abcourt have participated in the private placement:
Renaud Hinse, director and chief executive officer of
Abcourt, has purchased two units (representing 20,000 common shares and 10,000 warrants) and 483,000 flow-through shares. Decochib Inc., a private company controlled by Mr. Hinse, has subscribed 930,000 flow-through shares;
Nicole Veilleux, director of
Abcourt, has purchased three units (representing 30,000 common shares and 15,000 warrants) and 100,000 flow-through shares;
Daniel Adam, director of Abcourt, has purchased four units (representing 40,000 common shares and 20,000 warrants) and 108,600 flow-through shares.
The securities issued to the related parties in the private placement constitutes a "related party
transaction" within the meaning of Regulation 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
Regulation 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 Regulation 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 May 1, 2019. The
private placement is subject to the final approval of the TSX Venture Exchange.
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 (2018) and a positive preliminary economic assessment study (2012). Abcourt Mines is focused on the exploitation of the Elder mine.
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