Aben Closes $4.28 Million Private Placement Financing Led by Eric Sprott
August 21 2018 - 3:00PM
Aben Resources Ltd.
(TSX-V: ABN) (OTCQB: ABNAF)
(Frankfurt: E2L2) (“Aben” or the “Company”) is pleased to
announce it has closed its previously announced non-brokered
private placement financing (see news release dated August 15,
2018) for aggregate gross proceeds of approximately CAD $4.28
million. The Company intends to utilize the proceeds from this
financing for its ongoing 2018 exploration and drilling program at
its Forrest Kerr Gold Project located in B.C.’s Golden Triangle
region and for general working capital purposes.
Golden Triangle, BC Claims
Map:https://www.abenresources.com/site/assets/files/4287/fk-003.jpg
The Company has issued 14,264,967 units (each, a
“Unit”) at a price of $0.30 per Unit for gross proceeds of
$4,279,490 (the “Offering”). Each Unit consists of one common share
of the Company (each, a “Share”) and one share purchase
warrant (each, a “Warrant”) entitling the holder to purchase an
additional common share at a price of $0.45 for a period of two
years expiring August 21, 2020.
The Company is also pleased to announce that
approximately 4.78 million warrants have been exercised since May
31st, 2018, raising an additional $791,219 in net proceeds for the
Company.
The Company’s President and CEO, Jim Pettit,
stated: “With the closing of this financing, we are pleased to
welcome Eric Sprott as a large, strategic shareholder of
Aben. The Company is well positioned with over $6.0 million
in the treasury to expand the 2018 drill program at its flagship
Forrest Kerr Gold Project. Additional drilling is warranted on the
back of the results from the first drill hole in the program at the
newly discovered North Boundary zone which intersected four
separate high-grade intervals including 62.4 grams per tonne gold
over 6.0 m within 38.7 g/t Au over 10.0 m from 114.0 to 124.0 m.
Aben has now completed 4,850 meters of drilling in 16 holes and is
awaiting assay results. The majority of these holes were drilled at
the North Boundary Zone and the Company will provide updates as
results become available.”
As of the date hereof, after giving effect to
this acquisition, Mr. Eric Sprott beneficially owns and controls
6,666,667 Shares and 6,666,667 Warrants of Aben, representing
approximately 6.6% of the issued and outstanding shares on a
non-diluted basis, and approximately 12.5% on a partially diluted
basis. Prior to the date hereof, Mr. Sprott did not beneficially
own any securities of Aben.
The Units were acquired by Mr. Sprott, through
2176423 Ontario Ltd., for investment purposes. Mr. Sprott has a
long-term view of the investment and may acquire additional
securities of Aben either on the open market or through private
acquisitions or sell securities of Aben either on the open market
or through private dispositions in the future depending on market
conditions, reformulation of plans and/or other relevant
factors.
In connection with part of this Offering, the
Company paid $237,999.29 in cash finder's fees and issued 793,331
finder's warrants ("Finder's Warrants") to qualified arm's length
finders. Each Finder's Warrant entitles the holder to acquire one
additional Share at an exercise price of $0.45 for a period of two
years expiring August 21st, 2020. Four directors of the Company
subscribed for 175,000 Units of the Offering.
The securities issued pursuant to the Offering
and any shares issuable upon the exercise of warrants will be
subject to a statutory four month and one day hold period expiring
December 22nd, 2018.
Cornell McDowell, P.Geo., V.P. of Exploration of
Aben Resources, has reviewed and approved the technical aspects of
this news release and is the Qualified Person as defined by
National Instrument 43-101.
About Aben Resources:
Aben Resources is a Canadian gold exploration
company developing projects in British Columbia’s Golden Triangle,
the Yukon, and Saskatchewan. The Company is actively exploring its
flagship and high-grade Forrest Kerr Project located in the Golden
Triangle region where recent drilling has discovered strong
precious and base metal mineralization at the North Boundary
Zone.
For further information on Aben Resources Ltd.
(TSX-V: ABN), visit our Company’s web site at
www.abenresources.com.
ABEN RESOURCES LTD.
“Jim
Pettit”____________________________JAMES G.
PETTITPresident & CEO
For further information contact myself or:Don
MyersAben Resources Ltd. Director, Corporate
CommunicationsTelephone: 604-687-3376Toll Free:
800-567-8181Facsimile: 604-687-3119Email:
info@abenresources.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release includes certain statements that
may be deemed to be "forward-looking statements". All statements in
this release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements. Although management
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, and actual results or
developments may differ materially from those in the
forward-looking statements. The Company undertakes no obligation to
update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change. Factors
that could cause actual results to differ materially from those in
forward-looking statements, include market prices, exploration and
development successes, continued availability of capital and
financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.
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