Abitibi Metals to acquire remaining 20% of B26

Abitibi Metals entered a definitive agreement to acquire SOQUEM’s remaining 20% interest in the B26 polymetallic deposit, moving from 80% to 100% ownership. Initial consideration is ~C$7 million ($5 million cash + $2 million in shares), with two C$6 million milestone payments (each 50% cash/50% shares) tied to feasibility‑study completion and a construction decision. SOQUEM retains a 1% NSR royalty (replacing the 2023 JV royalty). If milestones are missed, SOQUEM receives up to 2% additional NSR and can re‑acquire up to 12% equity; Abitibi holds a $2 million repurchase option for any extra NSR. The deal also grants a 10‑year right of first refusal on SOQUEM’s Wagosic and Carheil properties and establishes a joint technical committee to advance B26 and Wagosic concurrently.

The transaction eliminates the last JV partner, giving Abitibi full operational and strategic control of its flagship asset. This removes approval hurdles, simplifies financing/development decisions, and positions B26 for a standalone development path. The accompanying ROFR on neighbouring properties adds optionality to consolidate the entire Selbaie camp into a larger platform. However, the milestone payment structure and default provisions introduce new financial and timeline risks: failure to deliver a feasibility study or construction decision on time triggers additional royalty/equity dilution. The acquisition was widely telegraphed after the 80% earn‑in (Mar‑2026) and discovery of a strategic partner, so the market had partially anticipated full consolidation. Still, formally securing 100% ownership is a genuine step‑change that removes residual uncertainty.

Abitibi Metals Corp. is a junior explorer focused on high‑grade polymetallic deposits in Quebec. The B26 deposit, 7 km from the past‑producing Selbaie mine, is a copper‑gold‑zinc‑silver VMS system with an updated Indicated resource of 13.0 Mt @ 2.1% CuEq and Inferred of 12.4 Mt @ 2.2% CuEq (25.3 Mt total). The company also holds 100% of the earlier‑stage Beschefer gold project. After recent financings, the treasury exceeds $45 million, funding an 80,000‑metre drill program (expanded from the initially planned 40,000 m) through 2027. A newly appointed COO (David Bernier, ex‑Foran Mining) signals the transition from pure exploration toward development and feasibility work.