Abcourt Mines Inc.

Abcourt Mines Inc.

December 02, 2010 09:22 ET

Abcourt Announces Pricing of New Issue of Units


Mr. Renaud Hinse, President and Chief Executive Officer of Abcourt Mines Inc. (TSX VENTURE:ABI)(FRANKFURT:ABI)(BERLIN:ABI)(the "Company") announced today that the Company has agreed with Industrial Alliance Securities Inc. (the "Agent") to the pricing of the previously-announced new issue of units of the Company (the "Units") in each of the provinces of British Columbia, Alberta, Ontario and Québec (the "Offering").

The Agent will offer on a best-efforts basis up to 30,000,000 Units at a price of $0.135 per Unit, for gross proceeds to the Company of up to $4,050,000.

Each Unit will be comprised of one Class B share (common share) and one common share purchase warrant of the Company (the "Warrants"). Each Warrant entitles its holder to purchase one additional common share of the Company at an exercise price of $0.175 for an initial period of 12 months from the date of closing of the Offering and $0.195 for a second period of 12 months from the end of the initial period of 12 months. The Units will separate into common shares and warrants immediately upon the closing of the Offering.

The Company will grant an over-allotment option to the Agent, exercisable for a period of 30 days following the closing of the Offering, exercisable in whole or in part to purchase additional Units in a maximum number equal to 15% of the number of Units sold pursuant to the Offering. In connection with the Offering, the Company will agree to pay the Agent a 7.50% cash commission and grant compensation options to the Agent entitling it to purchase that number of common shares of the Company equal to 7.50% of the aggregate number of Units issued and sold under the Offering (including the over-allotment option) for a period of 24 months.

The proceeds from the Offering will be used by the Company primarily to further advance the Elder Gold Mine project in the Abitibi region in the Province of Québec. The balance of the proceeds will be used for working capital.

The Company filed a preliminary short form prospectus on November 1, 2010 in respect of the Offering. The Company intends to file a (final) short form prospectus shortly. The Offering is also subject to customary conditions and regulatory approval, including the execution of an agency agreement between the Company and the Agent and the approval of the TSX Venture Exchange.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered, sold or delivered, directly or indirectly, within the United States, or to or for the account or benefit of U.S. persons unless the Units are registered under the 1933 Act or pursuant to an applicable exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell, nor it is a solicitation of an offer of securities, nor shall there be any sale of securities in any state of the United States in which such offer, solicitation or sale would be unlawful.

About Abcourt Mines Inc.

The Company, 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 the main focus currently being on the Elder project) and 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 recently done for the Elder mine. A positive 43-101 feasibility study was completed 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 under "Abcourt Mines Inc". A small location plan of the Elder and Tagami properties is shown on our web site. A small location plan and longitudinal projection of the Aldermac mineralized zones are also shown on our web site.

FORWARD-LOOKING STATEMENTS: Certain of the information contained in this news release may contain "forward-looking information". Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Abcourt Mines Inc. (the "Company"), or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Company's amended and restated annual information form dated November 26, 2010 and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does the Company undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

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
    819-768-2857 or 450-446-5511
    819-768-5475 or 450-446-3550 (FAX)