Abacus Closes Unit Offering of C$3.18 Million
March 15 2012 - 5:06PM
Marketwired
Abacus Mining & Exploration Corporation (TSX VENTURE:AME)
("Abacus" or the "Company") is pleased to report that the
previously announced non-brokered private placement unit offering
(the "Offering") has closed.
Pursuant to the Offering, the Company issued 14,446,818 units
("Units") at a price of C$0.22 per Unit, for gross proceeds to the
Company of C$3,178,300. Each Unit consists of one common share and
one-half of a non-transferable common share purchase warrant. Each
full warrant is exercisable to purchase one common share at a price
of C$0.32 per common share until March 14, 2013.
The Company paid cash finder's fees totaling C$169,000 being 6%
of the gross proceeds raised from Unit subscriptions attributable
to the efforts of finders.
All securities issued in connection with the Offering are
subject to a four-month hold period, expiring July 15, 2012.
Proceeds from the financing will be used to continue to advance
the Company's interest in the Ajax copper-gold project located near
Kamloops, B.C., a joint venture with global copper producer KGHM
Polska Miedz S.A., and for general corporate and working capital
purposes.
The securities have not been registered under the United States
Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold in the United States absent
registration thereunder or an applicable exemption from such
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy any of the
securities in the United States.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
James D. Excell, President & CEO
Donna Yoshimatsu, Director, Investor Relations
About Abacus
Abacus is a mineral exploration and mine development company
with a feasibility stage copper-gold project located in the Ajax
Mining Camp near Kamloops, B.C. The Ajax copper-gold project is a
joint venture between Abacus Mining & Exploration Corp. and
KGHM Polska Miedz S.A. ("KGHM") through KGHM Ajax Mining Inc.
("KGHM Ajax") currently owned 49% by Abacus and 51% by KGHM.
On December 21, 2011 Abacus announced robust feasibility study
results supporting production of a total of 2.5 billion lbs of
copper and 2.28 million ozs of gold in concentrate, or an average
of approximately 109 million lbs of copper and 99,000 ozs of gold
annually, over a 23 year mine life. The proposed mine plan
envisages a conventional open pit operation processing 60,000
tonnes per day or 21.9 million tonnes per year of ore. (see Report
titled "Ajax Copper/Gold Project - Kamloops, British Columbia
Feasibility Study Technical Report" by Wardrop (a Tetra Tech
Company) dated January 6, 2012 ("FS"))
Pursuant to the Joint Venture Shareholders' Agreement among
Abacus, KGHM and KGHM Ajax, KGHM has 90 days (expiring on or about
April 5, 2012) to acquire a further 29% in KGHM Ajax for cash
consideration equal to 29% of the proven and probable copper
equivalent reserves as defined in the FS, to a maximum of US$35
million, towards use by Abacus for its share of project capital. In
the event that KGHM chooses not to increase its interest in the
joint venture, Abacus then has 90 days to elect to purchase KGHM's
51% interest for US$37 million, and 90 days thereafter to close on
this purchase. Should Abacus choose not to purchase KGHM's interest
in its entirety, Abacus' interest in the joint venture can be
increased to 51% by paying approximately US$1.5 million to
KGHM.
Forward-Looking Information
This release includes certain statements that are deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address events or
developments that Abacus expects to occur, are forward-looking
statements. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company 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 may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include changes to commodity prices,
mine and metallurgical recovery, operating and capital costs,
foreign exchange rates, ability to obtain required permits on a
timely basis, exploitation and exploration successes, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. Forward-looking statements are
based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made. Except as required
by applicable securities laws, the Company undertakes no obligation
to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors,
should change.
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.
Contacts: Abacus Mining and Exploration Corp. James D. Excell
President & CEOjexcell@amemining.com Abacus Mining and
Exploration Corp. Donna Yoshimatsu Director, Investor Relations
(647) 345-0826dyoshimatsu@amemining.com www.amemining.com