GSKKF - Abitibi Metals Announces $4 Million Flow-Through Private Placement at up to $0.70/Share

(TheNewswire)

December 19, 2023 – TheNewswire - London, Ontario – Abitibi Metals Corp. (CSE:AMQ) (OTC:AMQFF) (FSE:4KG)(“Abitibi” or the “Company”), is pleased to announce anon-brokered private placement (the “Offering”) to raise grossproceeds of up to C$4,000,000 through the issuance of up to 5,833,333common shares of the Company that will be closed before December 29,2023.

The Offering consists of two parts, a) $3,500,000 ofcharity flow-through common shares (“CFT Shares”) priced atC$0.70/share for the issuance of 5,000,000 CFT Shares and b) $500,000of flow-through common shares (“FT Shares”) priced at C$0.60/sharefor the issuance of 833,333 FT Shares. The FT Shares and CFT Shareswill qualify as “flow-through shares” (within the meaning ofsubsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”)).

Jonathon Deluce, CEO of Abitibi Metals, stated, “ We are very grateful for the support AbitibiMetals has received from new and past shareholders. The closing ofthis financing, in conjunction with the recent financing where wewelcomed strategic investors, will bring our treasury to over ninemillion dollars and put us in a position to execute a significantlyexpanded and more aggressive drill campaign in 2024 as we will befully funded to drill over 20,000 metres.”

Mr. Deluce continued: “Our objective in the upcomingyear will be to build on the previous 115,311 metres drilled todelineate the open-pit potential of the B26 deposit, whileconcurrently advancing and expanding the existing underground resourceas we progress towards our goal of delivering a robust economichigh-grade copper resource. Drilling is anticipated to commence inJanuary, and the Company will provide an update shortly to detail theplans for its fully funded phase one drill program.”

The gross proceeds from the Flow-Through Offering andCharity Flow-Through Offering will be used to incur "Canadianexploration expenses" that are "flow-through miningexpenditures" (as such terms are defined in the Income Tax Act(Canada)) related to the Company’s projects in Québec.

Finder’s fees in cash or securities may be paid ongross proceeds of the financing, as permitted by securitieslaws.

The securities issued in connection with the Offeringare subject to the Company’s filing requirements with the CanadianSecurities Exchange, and all securities will be subject to afour-month statutory hold period after closing.

About Abitibi Metals Corp.:

Abitibi Metals Corp. is a Quebec-focused mineralacquisition and exploration company focused on the development ofquality base and precious metal properties that are drill-ready withhigh-upside and expansion potential. Abitibi’s portfolio ofstrategic properties provides target-rich diversification and includesthe high-grade B26 Polymetallic Copper Deposit (Ind: 7.0MT @ 2.94% CuEq & Inf: 4.4MT @ 2.97% Cu Eq) and the Beschefer Gold Project,where historical drilling has identified 4 historical intercepts witha metal factor of over 100 g/t gold highlighted by 55.63 g/t gold over5.57 metres and 13.07 g/t gold over 8.75 metres amongst four modelledzones.

ON BEHALF OF THE BOARD

Jonathon Deluce, Chief Executive Officer

For more information, please call 226-271-5170, email info@abitibimetals.com , orvisit https://www.abitibimetals.com .

The Company also maintains an active presence onvarious social media platforms to keep stakeholders and the generalpublic informed and encourages shareholders and interested parties tofollow and engage with the Company through the following channels tostay updated with the latest news, industry insights, and corporateannouncements:

Twitter: https://twitter.com/AbitibiMetals

LinkedIn: https://www.linkedin.com/company/abitibi-metals-corp-amq-c/

Neither the Canadian SecuritiesExchange nor its Regulation Services Provider accepts responsibilityfor the adequacy or accuracy of this release.

Forward-looking statement:

This news release contains certainstatements, which may constitute “forward-looking information”within the meaning of applicable securities laws. Forward-lookinginformation involves statements that are not based on historicalinformation but rather relate to future operations, strategies,financing plans, financial results or other developments on the B26Project or otherwise. Forward-looking information is necessarily basedupon estimates and assumptions, which are inherently subject tosignificant business, economic and competitive uncertainties andcontingencies, many of which are beyond the Company’s control andmany of which, regarding future business decisions, are subject tochange. These uncertainties and contingencies can affect actualresults and could cause actual results to differ materially from thoseexpressed in any forward-looking statements made by or on theCompany’s behalf. Although Abitibi has attempted to identifyimportant factors that could cause actual actions, events or resultsto differ materially from those described in forward-lookinginformation, there may be other factors that cause actions, events orresults to differ from those anticipated, estimated or intended. Allfactors should be considered carefully, and readers should not placeundue reliance on Abitibi’s forward-looking information. Generally,forward-looking information can be identified by the use offorward-looking terminology such as “expects,” “estimates,”“anticipates,” or variations of such words and phrases (includingnegative and grammatical variations) or statements that certainactions, events or results “may,” “could,” “might” or“occur.  Mineral exploration and development are highly speculativeand are characterized by a number of significant inherent risks, whichmay result in the inability of the Company to successfully developcurrent or proposed projects for commercial, technical, political,regulatory or financial reasons, or if successfully developed, may notremain economically viable for their mine life owing to any of theforegoing reasons, among others. There is no assurance that theCompany will be successful in achieving commercial mineral productionand the likelihood of success must be considered in light of the stageof operations.

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