Aben Gold (ABM.V) on Tuesday proposed to complete a non-brokered private placement financing to raise gross proceeds of up to $1.5 million by the issuance of up to 7.5 million flow-through units at a price of $0.20 each.
Each FT unit will consist of one flow-through common share in the capital of the company that will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada) and one-half of one common share purchase warrant, said the company.
Each whole warrant will entitle the holder thereof to acquire one non-flow-through common share at an exercise price of $0.30 per warrant share for a period of 24 months following the closing of the offering, added the company.
"In the event that, after the statutory hold period has expired, the closing price of the Issuer's common shares on any other stock exchange on which the Issuer's common shares are then listed, is at a price equal to or greater than $0.50 for a period of ten (10) consecutive trading days, the Issuer will have the right to accelerate the expiry date of the Warrants," said the company.
One or more insiders of the company are expected to participate in the offering.
The company plans to use the proceeds of the offering primarily for conducting exploration and drilling on its Justin gold tungsten property located within the Tombstone Gold Belt in southeastern Yukon Territory, Canada.
The closing of the offering is subject to receipt of approval of the TSX Venture Exchange.