Abacus Announces Private Placement

Abacus Mining & Exploration Corporation announced on December 8, 2025, a non-brokered private placement to raise gross proceeds of up to $300,000. The financing involves the issuance of up to 12,000,000 units at a price of $0.025 per unit. Each unit consists of one common share and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of $0.05 for a period of 36 months from the closing date. The proceeds from this private placement are earmarked for general working capital purposes. The offering is subject to the approval of the TSX Venture Exchange and the securities issued will be subject to a four-month hold period.

This private placement is a routine, albeit critical, capital injection for Abacus Mining & Exploration Corporation. Considering the company's financial position as of September 30, 2025, with cash and cash equivalents of only $55,501 and a negative working capital of approximately -$34.5 million, the $300,000 raise is essential to sustain operations and cover general administrative expenses.

• Financial Stability: The financing provides a temporary reprieve from the company's severe liquidity issues. However, given the substantial operating losses (loss of $3.39 million for the nine months ended Sep 30, 2025, with interest expense alone at $2.37 million), this amount is insufficient to provide long-term financial stability. It is a stop-gap measure rather than a solution.
• Dilution: The issuance of 12,000,000 new common shares, along with an equal number of warrants, will result in further dilution for existing shareholders. This follows a pattern of serial dilution, as evidenced by previous financings throughout 2025 (e.g., $470,000 private placement in April 2025, 23.5 million units at $0.02).
• Valuation: The unit price of $0.025 is slightly higher than the $0.02 unit price of the previous private placement closed in April 2025. It is also above the 52-week low of $0.02 but below the 52-week high of $0.03, which is a marginal positive indication of market willingness to participate at a slightly improved price point. However, the warrant exercise price of $0.05 is consistent with previous financings and significantly above the current trading price, making the warrants out-of-the-money.
• Project Advancement: The funds are designated for "general working capital purposes," implying no immediate direct allocation to significant exploration or development activities for the Ajax or Willow projects. This further reinforces that the financing is for operational maintenance rather than accelerating project milestones.

In summary, this news is neutral in terms of fundamental impact. It's a necessary capital raise for a financially distressed company that provides short-term liquidity but does not address the underlying issues of significant debt, consistent operating losses, and a lack of clear development progress for its core projects.

Abacus Mining & Exploration Corporation (AME.TSXV) is a Canadian company focused on copper and gold exploration and development. Its primary assets include:

• Ajax Copper-Gold Project (British Columbia, Canada): This is the company's flagship project, held through a 20% carried interest in KGHM Ajax Mining Inc., a joint venture with KGHM Polish Copper S.A. The project boasts significant Proven & Probable Mineral Reserves of 426 million tonnes grading 0.29% copper and 0.19 g/t gold, containing 2.7 billion pounds of copper and 2.6 million ounces of gold. Despite its substantial resource, the project is in the development stage and has faced considerable permitting and environmental challenges, stalling its progress. The "carried interest" means Abacus is not obligated to fund its share of capital expenditures until a construction decision, but it also implies limited control over the project's advancement.
• Willow Copper-Molybdenum Property (Nevada, USA): This is a 100% owned exploration-stage property. It is subject to a 2.5% Net Smelter Return (NSR) royalty, with Abacus holding an option to buy back 0.5% of this royalty for $500,000 or through the issuance of company shares.
• Nev-Lorraine Copper-Molybdenum Property (Nevada, USA): Another 100% owned exploration-stage property in Nevada.

The company's objective is to build a copper exploration and development company, leveraging its interest in Ajax and exploring its wholly-owned Nevada properties.