Abasca closes $2.5-million private placement

Executive Summary

• Abasca Resources Inc. has closed a non-brokered private placement of flow-through common shares, raising gross proceeds of $2.5 million.
• The shares were issued at a price of 16 cents per share, totaling 15,625,000 flow-through common shares.
• The transaction involved significant related-party subscriptions from entities controlled by CEO Dawn Zhou, for which the company received exemptions from formal valuation and minority approval requirements under MI 61-101.

Key Details

• Transaction Structure: Non-brokered private placement of flow-through common shares.
• Price: 16 cents per flow-through share.
• Quantity Issued: 15,625,000 flow-through common shares.
• Gross Proceeds: $2.5 million.
• Use of Proceeds: Primarily to complete the 2025 summer drilling program focused on upgrading the resource estimate at the Loki Flake graphite deposit (Key Lake South project).
• Related Party Subscriptions:
  • 101159623 Saskatchewan Ltd. (SaskCo): Subscribed for 5,000,000 FT shares (solely owned by Dawn Zhou).
  • CSIT Consulting Inc.: Subscribed for 3,625,000 FT shares (solely owned by Ms. Zhou).
  • 9169601 Canada Inc.: Subscribed for 5,000,000 FT shares (preferred shares held by Ms. Zhou).
• Regulatory Exemptions: The company is exempt from formal valuation and minority approval requirements under Multilateral Instrument 61-101 because:
  • Shares are listed on the TSX Venture Exchange.
  • The fair market value of shares/consideration from related parties does not exceed $2.5 million.
  • The company has more than one independent director.
  • At least two-thirds of independent directors approved the offering.

Notable Quotes

• None provided in the text.