Abcourt Announces Proposed US$10M Increase to Debenture Financing with Glencore
Abcourt’s debt restructuring secures time while dilution and declining grades pressure near-term margins at its operations.
Abcourt Mines Inc. (ABI) has entered a non-binding term sheet to increase its existing senior secured debenture with Glencore AG from US$30,000,000 to US$40,000,000. The second tranche disbursement is accelerated from December 2026/January 2027 to on or about August 12, 2026. As part of the arrangement, Glencore will receive 46,943,333 non-transferable warrants with an exercise price of C$0.12 per warrant.
Proceeds from the transaction will be allocated to: - Repaying the US$12,000,000 secured credit facility with Nebari Natural Resources Credit Fund II, LP - Funding exploration and capital expenditures at the Sleeping Giant and Flordin projects - Providing additional working capital
The transaction remains subject to TSX Venture Exchange approval.
Abcourt Mines Inc. (ABI) has undertaken a balance sheet restructuring to address the maturity of its higher-cost Nebari credit facility by upsizing and accelerating the Glencore facility. The transaction extends debt maturity, lowers the effective cost of capital, and provides immediate working capital runway.
The deal includes the issuance of approximately 47 million warrants at C$0.12, a price well above the current $0.07 market price, introducing significant future dilution and potential overhang. The market has already priced in refinancing needs given the company's negative equity and going concern qualification. The stock has traded in a tight $0.07–$0.08 range for months, suggesting this financing was telegraphed and expected.
Abcourt Mines Inc. (ABI) is a Quebec-based gold producer currently in the ramp-up phase at its 100% owned Sleeping Giant mine. The company’s portfolio includes Sleeping Giant, which is in production, alongside Flordin, Discovery, Cameron Shear (a 51% joint venture), Abcourt-Barvue (an Ag-Zn VMS property), Vendôme, Aldermac (copper), and the Elder Mine.
Abcourt holds approximately 510 km² of strategic land in the Abitibi and Eeyou Istchee regions, supported by an operational 800–950 tpd mill and an 83-room camp. Management is transitioning from room-and-pillar mining to long-hole stoping to increase production flexibility and accelerate the pace toward commercial production.