ABE Resources Increases its Private Placement
ABE Resources Increases its Private Placement
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VAL-D'OR, QC
,
April 24, 2017
/CNW Telbec/ - ABE Resources Inc. (TSXV: ABE) (the "
Company
" or "
ABE
") is pleased to announce that it is increasing the
maximum size of its non-brokered private placement (the "
Private Placement
") from
$2,000,000 to $2,250,000
. The Private Placement is being completed in
connection with a 2:1 consolidation of the Company's issued and outstanding securities (the "
Consolidation
"), its proposed arm's length acquisition (the
"
Acquisition
") of Pioneer Resources Inc. ("
Pioneer
"), and a series of shares for debt transactions to settle
$145,904
in outstanding indebtedness of Pioneer
owed to certain current officers, directors, and shareholders of Pioneer (the "
Debt Settlement
"), as previously announced on
November 15, 2016
and
April 21,
2017
.
The Private Placement now consists of an offering of a minimum of 30,000,000 post-Consolidation units of ABE (each, a "
Unit
") and a maximum of 45,000,000
Units at a price of
$0.05
per Unit for minimum gross proceeds of
$1,500,000
(the "
Minimum Offering
") and maximum gross proceeds of
$2,250,000
.
Each Unit will consist of one post-Consolidation Share and one post-Consolidation common share purchase warrant (a "
Warrant
"), with each Warrant entitling
the holder thereof to acquire one post-Consolidation Share at an exercise price of
$0.15
per Share for a period of 24 months.
The proceeds of the Private Placement will be used to complete the transactions described in this news release (collectively, the "
Transactions
") and to carry out
exploration work on Pioneer's mining properties located near the town of
Ste-Anne-des Monts
, in the province of
Quebec
, known as the Dôme
Lemieux
property.
In connection with the Private Placement, the Company has agreed to pay a finder's fee in respect of those purchasers introduced to the Company by Echelon
Wealth Partners Inc. (the "
Finder
"). The Finder will receive a cash payment equal to 6% of the gross proceeds received from purchasers under the Offering who
were introduced to the Company by the Finder.
The closing of the Acquisition remains subject to completion of the Consolidation, the Minimum Offering, and the Debt Settlement and each of the Transactions
remain subject to the final approval of the TSX Venture Exchange.
About ABE Resources Inc.
ABE Resources Inc. is a
Quebec
mineral exploration company focused on the discovery and development of mineral deposits of economic potential primarily in
the province of
Quebec
. For further information on the Company, please visit our website at
www.aberesources.ca
or contact us at
.
About Pioneer Resources Inc.
Pioneer is a privately held mineral exploration company with an experienced mineral exploration management team that holds a 100% undivided interest in the
Dôme
Lemieux
property located in Gaspé,
Quebec
. The property hosted three past producing mines (lead, copper, zinc) and several showings, is accessible by
road year-round, and has historical drilling totalling approximately 66,000 m.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this
press release.
NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under
applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the ability of ABE to obtain all
required approvals and consents and to complete the Transactions; the terms and conditions of the proposed Transactions; use of funds from the Private
Placement; and the business and operations of ABE upon completion of the proposed Transactions. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may
cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are
not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; and the ability of ABE to
execute and achieve its business objectives. 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. Accordingly, readers should not place undue reliance on forward-looking statements. ABE disclaims
any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.
SOURCE
ABE Resources Inc.
View original content: http://www.newswire.ca/en/releases/archive/April2017/24/c8377.html
%SEDAR: 00003760E
For further information:
regarding the Transactions, please contact: ABE Resources Inc., Yves Rougerie, President and Chief Executive Officer, Tel:
819-874-6200, Email: [email protected]
CO: ABE Resources Inc.
CNW 16:20e 24-APR-17