- Abcourt Mines (TSXV:ABI) accepted C$5.8 million in loan offers from Investissement Québec, the Government of Quebec’s economic development company
- Abcourt recently restarted production at its Sleeping Giant mine, which generated over 1 million ounces of gold from 1987 to 2014
- Abcourt Mines stock has added 60 per cent year-over-year but remains down by 50 per cent since 2020
Abcourt Mines (TSXV:ABI) accepted C$5.8 million in loan offers from Investissement Québec, the Government of Quebec’s economic development company.
This content has been prepared as part of a partnership with Abcourt Mines Inc., and is intended for informational purposes only.
The news follows the recent restart of a 250,000-ton-per-year mill on Abcourt’s flagship Sleeping Giant mine, which generated over 1 million ounces of gold from 1987 to 2014 and is once again ramping up production to capitalize on record-high gold prices.
Sleeping Giant yielded a 2023 resource estimate of 173,300 ounces of gold indicated and 248,300 ounces inferred, with numerous high-conviction targets still to be explored. This is in addition to a 2023 preliminary economic assessment detailing an after-tax net present value of C$54.4 million at US$1,800 per ounce of gold, representing a healthy margin to the current price of US$3,408.90 at the time of writing.
Financing details
Abcourt’s offers from Investissement Québec include an up to C$1.3 million bridge loan to finance tax credits related to resources for the fiscal year ending June 30, 2025, as well as a second bridge loan of up to C$4.5 million to finance tax credits related to resources for the fiscal year ending June 30, 2026.
The loans, subject to definitive agreements, will bear interest annually at the prime rate plus 2.55 per cent, up to December 31, 2026, and up to December 31, 2027, respectively, and will be secured by a first-ranking security on refundable tax credits and an irrevocable support letter of credit representing 10 per cent of the loans’ value.
Leadership insights
“We are very pleased to have Investissement Québec as a financial partner in the development of the Sleeping Giant project,” Pascal Hamelin, Abcourt Mines’ president and chief executive officer, stated in Friday’s news release. “This partnership provides significant support to Abcourt during this important phase of the project’s development towards commercial production.”
About Abcourt Mines
Abcourt Mines is a Canadian mineral development company with properties strategically located in northwestern Quebec.
Abcourt Mines stock (TSXV:ABI) opened unchanged trading at C$0.08. The stock has added 60 per cent year-over-year but remains down by 50 per cent since 2020.
Join the discussion: Find out what investors are saying about this Canadian gold stock on the Abcourt Mines Inc. Bullboard, and make sure to explore the rest of Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
