Abasca Resources Closes Non-Brokered Private Placement of $2.25 Million
Abasca secured $2.25 million for Loki graphite drilling, with insiders leading the subscription to advance the project.
Abasca Resources Inc. closed a non-brokered private placement on September 29, 2026, issuing 9,000,000 flow-through common shares at $0.25 per share. The transaction generated gross proceeds of $2,250,000, which are designated for continued exploration, geometallurgical testing, and environmental data collection at the Loki Flake Graphite Deposit (Key Lake South Project).
Insider participation was significant, with entities controlled by CEO Dawn Zhou subscribing to 2,250,000 shares, representing 25% of the placement. All issued shares carry a four-month hold period expiring January 30, 2027. The transaction closes a previously announced offering from September 23, 2026, which coincided with the filing of a Preliminary Economic Assessment (PEA) and an updated Mineral Resource Estimate.
Abasca Resources Inc. (ABA) announced a financing round that follows up on its September 23 disclosure, providing routine capital to support its fast-track exploration roadmap. The deal includes insider subscriptions, with entities affiliated with the CEO doubling their positions at a price of $0.25 per share. This placement price stands at a 60% premium over the company’s current market price of $0.10, suggesting the broader market has not yet priced in the private placement valuation or views the transaction as a negotiated, non-public event.
The financing is accompanied by a Preliminary Economic Assessment (PEA) that outlines a project with a 19-year mine life, a $130 million after-tax net present value (NPV), and a 16.7% internal rate of return (IRR). These metrics are based on a base case graphite price of $1,450 per tonne. The PEA assumes no debt financing and relies on speculative Inferred Resources.
The issuance of 9 million shares represents approximately 5.8% dilution to existing shareholders. The capital raise comes as the company faces an explicit going concern warning and an accumulated deficit of $20.9 million.
Abasca Resources Inc. (TSXV: ABA) is a Canadian exploration-stage company focused on the Loki Flake Graphite Deposit within the 23,974-hectare Key Lake South Project in northern Saskatchewan. The project is located 15 km south of existing Key Lake mill infrastructure, providing proximity to power, water, and highway access.
The company is transitioning from grassroots exploration to project advancement, having completed a Preliminary Economic Assessment (PEA) and an updated Mineral Resource Estimate. The Resource Estimate, effective April 23, 2026, includes 6.99 million tonnes of Indicated resources at 8.27% Cg and 15.83 million tonnes of Inferred resources at 6.93% Cg.
The PEA highlights a 2,750 tonnes per day open-pit operation with a 19-year mine life, producing an average of 66,500 tonnes per annum of 95% grade graphite concentrate. The base case assumes a graphite price of $1,450 per tonne, yielding an after-tax net present value (NPV) of $130 million and an internal rate of return (IRR) of 16.7%.
No historical production or Mineral Reserves have been reported. The project remains in the pre-development phase.