Abcourt Closes Private Placement of Debenture and Equity to Restart Sleeping Giant Mine

Core Points - Abcourt Mines Inc. has successfully closed a non-brokered private placement of secured convertible debentures, raising gross proceeds of $3,000,000 [1][2] - The debenture will bear interest at Term SOFR plus 10% per annum and is convertible into common shares at a price of $0.05 per share during the first year and $0.10 thereafter [2] - The company also closed a tranche of non-brokered equity financing, raising $1,056,000 through the sale of 21,120,000 units at a price of $0.05 per unit [4][5] - The proceeds from both offerings will be used to restart the Sleeping Giant mine and mill, repay outstanding payables, and for general corporate purposes [9] Financing Details - The debenture will mature four years from the issuance date and can be prepaid by the corporation without penalty [2] - Each unit in the equity offering consists of one share and one share purchase warrant, allowing the purchase of one share at $0.08 until June 26, 2028 [5] - All securities issued are subject to a restricted period of four months plus one day following their issuance [6] Related Party Transaction - The debenture was purchased by François Mestrallet, a director of the corporation, qualifying it as a related party transaction under MI 61-101 [3] - Prior to the offering, Mr. Mestrallet held 16.10% of the shares on a non-diluted basis, which will change to 15.76% post-offering [11][12] Financing Facility - The corporation is finalizing a secured financing facility with Nebari Natural Resources Credit Fund II, LP, amounting to $8 million for a 36-month period [8] - This facility is intended to support the restart of the Sleeping Giant mine and is part of the overall financing strategy [9]