US-based Abcourt Secures $8 Million Loan for Commencement of Sleeping Giant Mine Operations
Abcourt Mines Inc., a Canadian development company with properties strategically located in northwestern Quebec, Canada, has successfully closed a secured financing facility with Nebari Natural Resources Credit Fund II, LP for US$8 million. This investment will significantly advance the development of the Sleeping Giant Mine project.
The financing facility, which lasts for a 36-month period, will be used to construct essential infrastructure, including a sleep camp and kitchen to accommodate workers, and to complete the tailings facility, crucial for storing processing residuals and ensuring compliance with environmental regulations.
Steven Bowles, Managing Director of Nebari, expressed confidence in Abcourt's ability to bring the Sleeping Giant Mine to its full potential. Pascal Hamelin, President and CEO of Abcourt, commented that this investment offers operational flexibility and will help develop the Sleeping Giant Mine towards commercial production.
The plan includes starting gold production from the upper levels of the mine to generate early cash flow. Lower levels will be developed to expand mining fronts and ensure long-term output. The project aligns with Quebec's *Plan Nord*, benefiting from government support and streamlined regulatory processes, which enhances its credibility in the mining sector.
Infrastructure and surface preparation are on track to support the commencement of mining by Q3 2025. The Financing Facility may be repaid prior to maturity after the first year, subject to certain conditions. Abcourt issued 87,040,000 non-transferable warrants to the Lender, each exercisable for one common share at $0.0625 per share until July 3, 2028.
It is important to note that the securities issued in connection with the Financing Facility are subject to a forward-looking statement disclaimer due to potential risks and uncertainties. Finder's fees in an amount representing 1% of the Principal Amount are payable in cash to an arm's length third party in connection with the Financing Facility. All securities issued in connection with the Financing Facility are subject to a restricted period under applicable securities laws, ending on the date that is four months plus one day following the Closing Date.
The financing facility was previously announced on April 10, 2025, June 18, 2025, and June 26, 2025. Abcourt has entered into security arrangements with the Lender to secure the financing facility with a first priority senior security on all of Abcourt's movable and immovable property. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.
Interest on the Principal Amount will accrue based on a floating rate per annum, with the Term SOFR and an additional 12% per annum. If the Term SOFR is less than 4%, it will be deemed to be 4%. Abcourt owns the Sleeping Giant mine and mill, as well as the Flordin property, where it focuses its development activities.
The TSX Venture Exchange has not accepted responsibility for the adequacy or accuracy of this release.
The 36-month financing facility, secured with Nebari Natural Resources Credit Fund II, LP, will be utilized across various sectors like infrastructure development, energy consumption, and business operations in the Sleeping Giant Mine project. This investment, aligned with Quebec's Plan Nord, will help Abcourt Mines Inc. progress towards commercial production, escalating its presence within the mining industry and finance sector.
