Abcourt announces its Results for the First Quarter ended September 30, 2022
For immediate release
TSX Venture: ABI.V
Abcourt announces its Results for the First Quarter ended September 30, 2022
Rouyn-Noranda, Canada, November 28, 2022 - Abcourt Mines Inc. ( “Abcourt” or the
“Company”) (TSX Venture: ABI) announces its results for the first quarter ended September 30,
2022, representing a net loss of $1,144,563, and an adjusted ne t loss of $1,056,172, compared
to an adjusted net result of $768,353 for the same period in 2021.
The financial results announced today are the result of the cessation of activities at the Elder mine
on August 1, 2022.
Since May 9, Abcourt has been working on the development of the Sleeping Giant mine and the
improvement of the Company's financial balance sheet. Abcourt is currently completing a mineral
resource update for the Sleeping Giant mine. The Company expects to publish this update before
December 31, 2022 and file the 43-101 Technical Report on SEDAR in early 2023.
All amounts are in Canadian dollars unless otherwise indicated.
Highlights for the Quarter
Revenues of $2,691,935 for the quarter ended September 30, 202 2, mainly from the sale
of gold ounces in inventory as of June 30, 2022 and from plant clean-up carried out during
fiscal 2022.
A net loss of $1,144,563 and an adjusted net loss of $1,056,17 2, compared to adjusted
net income of $768,353 for the same period in 2022.
Cost of sales of $2,792,824, compared to $6,722,895 in Q1-2022 , a significant decrease
explained by the cessation of mining operations at the Elder mine.
Ounces sold were 1,174 ounces and came mainly from inventory o unces as of June 30,
2022. The average price realized on the sale of gold for the qu arter was $2,264
(US$1,742) per ounce of gold, compared to $2,260 (US$1,794) in Q1-2022, which is
comparable.
Cash of $2,716,254, compared to $720,512 as of June 30, 2022. Company’s working
capital of $(3,057,707) compared to $(5,246,416) as of June 30, 2022. A net improvement
during the quarter of cash and working capital compared to June 30, 2022 in part related
to financing activities.
On July 20, 2022, the Company completed a private placement co nsisting of 550,000 units
at a price of $0.065 per unit for gross proceeds of $35,750. Ea ch unit consisted of one
class “B” common share and one warrant. Each whole warrant enti tles the holder to
subscribe to one class “B” common share at an exercise price of $0.15 for a period of 3
years from the date of issue of the warrant.
On July 20, 2022, the Company completed a private placement co nsisting of 14,475,000
flow-through units at a price of $0.08 per unit for gross proceeds of $1,158,000. Each unit
consists of one class “B” flow-through common share and one war rant. Each whole
warrant entitles the holder to subscribe to one class “B” commo n share at an exercise
price of $0.15 for a period of 3 years from the date of issue o f the warrant. As part of this
private placement, the Company paid a cash commission of $69,000 and issued 862,500
warrants to an intermediary. Each warrant entitles the holder t o subscribe to one unit at
an exercise price of $0.15 for a period of 3 years from the dat e of issue of the warrant.
Each unit consists of one class "B" common share and a warrant to subscribe for one
class "B" common share at an exercise price of $0.15 for a period of 3 years from the date
of issue of the warrant.
On August 1, 2022, the Company ceased the mining activities at the Elder mine.
In August 2022, the Company commissioned the firm Kalem Consul ting of Sudbury to
recover the gold in the circuits at its plant located on the Sleeping Giant site. Gold recovery
work in the circuit began during the month of September 2022 and will run until early 2023.
In September 2022, the Company commissioned the firm Innov-Exp lo to design the
geological model of its Discovery and Flordin properties, to ad d the results of drill holes
from the past 15 years to the historical resources of these two projects, to update the
resources, and finally, to plan the work for 2023 on these prop erties in order to increase
the mineral resources.
In July 2022, the Company retained the services of the firm In nov-Explo to compile
historical data and 3D modeling of the Sleeping Giant property. The geological model is
in progress, and the Company expects to publish a mineral resou rce update for the
Sleeping Giant Mine before the end of December 2022.
On September 22, 2022, the Company sold a royalty to Maverix M etals Inc. of 2% of the
net smelter return on all metallic and non-metallic minerals mined or otherwise recovered
on each of the Sleeping Giant and Dormex properties in consider ation of US$ 2,000,000
in cash ($2,651,875 in canadien dollars). Pursuant to the royalty agreement, the Company
may at any time before the third anniversary of the signature o f the agreement, elect to
reduce the royalty rate by 0.5% upon payment of an amount of US$2,000,000 to Maverick
Metals Inc., and may, at any time prior to the sixth anniversary of the signing of the Royalty
Agreement, elect to reduce the royalty rate by 0.5% upon paymen t of US$4,000,000 to
Maverick Metals Inc, thus reducing the royalty rate to 1.0%, as long as Abcourt has
exercised the option before the third anniversary of the signing of the agreement to reduce
the royalty rate by 0.5% by paying the US$2,000,000 to Maverick Metals Inc. The
Company paid fees representing 4% of the amount of the transact ion to Red Cloud
Securities Inc. in consideration for its services as financial advisor in connection with the
Transaction.
On September 27, 2022, the Company closed a private placement consisting of 5,000,000
units at a price of $0.065 per unit for gross proceeds of $325, 000. Each unit consists of
one class “B” common share and one warrant. Each warrant entitl es the holder to
subscribe to one class “B” common share at the exercise price o f $0.15 for a period of 3
years from the date of issue of the warrant. As part of the pl acement, the Company paid
a cash commission of $19,500 and issued 300,000 warrants to an intermediary. Each
warrant entitles the holder to subscribe to one unit at an exercise price of $0.15 for a period
of 3 years from the date of issue of the warrant. Each unit con sists of one class "B"
common share and a warrant to subscribe for one class "B" common share at an exercise
price of $0.15 for a period of 3 years. from the date of issue of the warrant.
New Strategy
Since the beginning of the fourth quarter, the Company has made several changes and initiated
several actions to promote the Company’s assets:
Appointment of Pascal Hamelin as President and Chief Executive Officer on April 4, 2022.
Cessation of mining activities at the Elder mine on August 1, 2022 until the geology of the
deposit is reassessed.
Mandate to an independent firm to update the mineral resources at the Sleeping Giant
mine no later than December 31, 2022.
Offer to purchase the company with strong potential Pershimex Resources Corporation.
Mandate to an independent firm to update the mineral resources of the Flordin and
Discovery deposits, planned for the spring of 2023.
Major cleaning of the ore processing plant at Sleeping Giant t o recover gold following the
cessation of mining activities at the Elder Mine on August 1.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian exploration corporation with strategically
located properties in northwestern Québec, Canada. Abcourt owns the Sleeping Giant mill and
mine where it concentrates its activities.
For further information, please visit our website at www.abcourt.com , and consult our filings under
Abcourt's profile on www.sedar.com, or contact:
Pascal Hamelin
President and CEO
T: (819) 768-2857
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276, post 456
FORWARD-LOOKING INFORMATION
Certain information contained herein may constitute “forward-looking information” under Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”,
“might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”,
“could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other si milar expressions. Forward-
looking statements, including the ex pectations of Abcourt’s management regarding the completion of the
Transaction, are based on Abcourt’s estimates and are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activi ty, performance or achievements of
Abcourt to be materially different from those expres sed or implied by such forward-looking statements or
forward-looking information. Forward-looking statements are subject to business and economic factors and
uncertainties, and other factors that could cause actual results to differ materially from these forward-looking
statements, including the relevant assumptions and ri sks factors set out in Ab court’s public documents,
available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Although Abcourt believes that the assump tions and factors used in preparing the forward-
looking statements are reasonable, undue reliance should not be placed on these statements and forward-
looking information. Except where required by applicable law, Abcourt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a result of new information, future events or
otherwise.
The TSX Venture Exchange and its regulatory service provider (as defined in the policies of the TSX
Venture Exchange) assume no responsibility for the adequacy or accuracy of this press release.