ABRA:CC - AbraSilver Announces Closing of C$20 Million Strategic Investments by Kinross Gold and Central Puerto
(TheNewswire)
Toronto – TheNewswire - April 26, 2024 - AbraSilver Resource Corp.(TSXV:ABRA ) ; ( OTC:ABBRF) ("AbraSilver" or the “Company”) is pleased to announce the completion ofits previously announced non-brokered private placement (the“Private Placement”). The Company issued 50,000,000 commonshares (the “Common Shares”) at a price of $0.40 per share foraggregate gross proceeds of C$20 million. As a result, Kinross GoldCorporation (“Kinross”) (NYSE: KGC, TSX: K) and an affiliate ofCentral Puerto SA (“Central Puerto”) (NYSE: CEPU) each ownapproximately 4.0% of the outstanding Common Shares on an undilutedbasis.
All Common Shares issued in connection with the closingof the Private Placement are subject to a four-month-and one-daystatutory hold period in accordance with applicable securitieslaws.
The strategic investments by Kinross and Central Puertocall for the formation of a five-person Technical Advisory Committeecomprised of two members from AbraSilver, two members from Kinross andone member from Central Puerto. The Technical Advisory Committee willprovide advice and guidance on the upcoming Phase IV explorationcampaign and the future development plans for the Company’s flagshipDiablillos project in Salta Province, Argentina (“Diablillos”). Separately a Strategic & Operational Committee will be formed,comprised of two members from AbraSilver and two members from CentralPuerto. The Strategic & Operational Committee will provide adviceand guidance on strategic, operational, financial, tax,infrastructure, government and regulatory affairs, among othersmatters.
Mr. John Miniotis, President and CEO of AbraSilvercommented: “We are very pleased to welcome both Kinross and CentralPuerto as key shareholders and strategic partners in AbraSilver. With a strong balance sheet consisting of approximately C$25 millionin cash, the Company is now very well positioned to aggressivelyadvance Diablillos and continue to unlock value for all shareholders.We now turn our focus to the upcoming drill program at Diablillos,which will be commencing over the coming weeks and additional detailswill be provided in the near future.”
The Company will use the proceeds of the PrivatePlacement for exploration and development of Diablillos and forworking capital and general corporate purposes. In connection withthe completion of the Private Placement, the Company will payaggregate cash finders’ fees of C$900,000 to INFOR Financial Inc.and Southern Cone Partners.
About AbraSilver
AbraSilver is an advanced-stage exploration companyfocused on rapidly advancing its 100%-owned Diablillos silver-goldproject in the mining-friendly Salta province ofArgentina . The current Proven and ProbableMineral Reserve estimate for Diablillos consists of 42.3 Mt grading 91g/t Ag and 0.81 g/t Au, containing approximately 124 Moz silver and1.1 Moz gold, with significant further exploration upside potential.In addition, the Company has entered into an earn-in option and jointventure agreement with Teck on the La Coipita project, whereby Teckcan fund up to US$20 million in exploration expenditures and makecertain other payments to earn up to an 80% interest. AbraSilver islisted on the TSX-V under the symbol “ABRA” and in the U.S. on theOTCQX under the symbol “ABBRF.”
For further information please visit the AbraSilverResource website at www.abrasilver.com , ourLinkedIn page at , and follow us on Twitter at .
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Statements
This news release includes certain"forward-looking statements" under applicable Canadiansecurities legislation. Forward-looking statements are necessarilybased upon a number of estimates and assumptions that, whileconsidered reasonable, are subject to known and unknown risks,uncertainties, and other factors which may cause the actual resultsand future events to differ materially from those expressed or impliedby such forward-looking statements. All statements that address futureplans, activities, events or developments that the Company believes,expects or anticipates will or may occur are forward-lookinginformation. There can be no assurance that such statements willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements.When considering this forward-looking information, readers should keepin mind the risk factors and other cautionary statements in theCompany’s disclosure documents filed with the applicable Canadiansecurities regulatory authorities on SEDAR+ at www.sedarplus.ca. Therisk factors and other factors noted in the disclosure documents couldcause actual events or results to differ materially from thosedescribed in any forward-looking information. The Company disclaimsany intention or obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise, except as required by law.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this news release.
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