Abcourt Mines Inc.

Abcourt Mines Inc.

April 21, 2011 17:28 ET

Abcourt Announces Closing of New Issue of Units

MONT-ST-HILAIRE, QUÉBEC--(Marketwire - April 21, 2011) -


Abcourt Mines Inc. (TSX VENTURE:ABI)(FRANKFURT:ABI) ("Abcourt" or the "Company") is pleased to announce today that it has completed the closing of its previously-announced new issue of units of the Company (the "Units") for a total of 35,138,888 Units (the "Offering"), which includes the exercise in full of the over-allotment option granted to Industrial Alliance Securities Inc. (the "Agent"), as agent to the Company in connection with the Offering. The 35,138,888 Units were issued and sold by the Company at a price of $0.18 per Unit, for gross proceeds to the Company of $6,325,000.

Each Unit is comprised of one Class B share (common share) and one common share purchase warrant of the Company (a "Warrant"). Each Warrant entitles its holder to purchase one additional common share of the Company at an exercise price of $0.23 for an initial period of 12 months from the date of closing of the Offering and $0.26 for a second period of 12 months from the end of the initial period of 12 months.

The Offering was conducted through the Agent on a best-efforts basis. Pursuant to the terms of an agency agreement dated April 18, 2011 entered into between the Company and the Agent, the Company has agreed to pay the Agent a 6.50% cash commission and grant compensation options to the Agent entitling it to purchase that number of common shares of the Company equal to 6.50% of the aggregate number of Units issued and sold under the Offering (including the Units to be issued and sold upon the exercise of the Over-Allotment Option) for a period of 24 months.

The proceeds from the Offering will be used by Abcourt primarily to further advance the Elder Gold Mine and the Abcourt-Barvue projects in the Abitibi region in the Province of Québec. The balance of the proceeds will be used for working capital.

About Abcourt Mines Inc.

Abcourt Mines Inc. is an exploration and development company with strategically located properties in Northwestern Quebec, Canada. The Elder mine with 43-101 gold resources, the Abcourt-Barvue project with 43-101 silver-zinc ore reserves and resources and the Aldermac property with historical copper-zinc resources are all former producers. Abcourt is now focused on bringing the Elder and Abcourt-Barvue projects back in production with Elder as the first priority. At the same time, it is working on other projects (Aldermac, Jonpol and Vendome), to increase its mineral resources inventory. A 43-101 resource calculation was completed in July 2009 for the Elder mine. A positive 43-101 feasibility study was completed by GENIVAR in 2007 on the Abcourt-Barvue project. In addition, mill equipment was purchased. To know more about Abcourt, please consult our web site and SEDAR at under "Abcourt Mines Inc".

This press release was prepared by Mr. Renaud Hinse, a qualified person, president of Abcourt Mines Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Abcourt Mines Inc.
    Renaud Hinse, President and Chief Executive Officer