Abitibi Closes Bought Deal Public Offering of Common Shares and Flow-Through Shares

Executive Summary

• Abitibi Metals Corp. closed a bought‑deal public offering of 33,327,000 common shares for gross proceeds of $16.1 M.
• The offering comprised 13,144,500 hard‑dollar shares at $0.35 each ($4.60 M) and 20,182,500 flow‑through shares at $0.57 each ($11.50 M).
• Proceeds will be allocated to exploration of the B26 Polymetallic Deposit (flow‑through portion) and general corporate purposes (hard‑dollar portion).

Key Details

• Underwriters: BMO Capital Markets (lead bookrunner), Haywood Securities Inc., ATB Securities Inc., Desjardins Securities Inc., Paradigm Capital Inc., Stifel Nicolaus Canada Inc.
• Over‑allotment exercised: Full exercise, increasing total shares issued to 33,327,000.
• Pricing:
• Hard‑dollar Common Shares – $0.35 per share → $4,600,575 gross proceeds.
• Flow‑Through Shares – $0.57 per share → $11,504,025 gross proceeds.
• Use of Proceeds:
• Flow‑through portion to fund eligible Canadian exploration expenses for the B26 Polymetallic Deposit (to be incurred by 31 Dec 2026 and renounced by 31 Dec 2025).
• Hard‑dollar portion for general corporate purposes.
• Commission: Underwriters received a cash commission equal to 6.0% of total gross proceeds, paid from the hard‑dollar proceeds.
• Regulatory filings: Offered securities sold under a short‑form prospectus dated 8 Dec 2025 in Canada; U.S. purchasers participated via a Rule 144A private placement exemption.
• Tax considerations: Flow‑through shares qualify for Canadian exploration expense deductions and critical mineral mining expenditure credits, including Québec‑specific tax benefits for eligible residents.

Notable Quotes

• “On behalf of the Board of Abitibi Metals Corp., we are pleased to have successfully completed this financing, which provides essential capital to advance our flagship B26 project.” – Jonathon Deluce, President & CEO, Director.