Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB), a Canadian gold exploration firm, has arranged a non-brokered private placement of up to 13,333,333 units at a price of CA$0.30 each to raise gross proceeds of up to $4 million, the company announced on August 15.
"Each unit will consist of one common share and one warrant exercisable to purchase one additional common share at a price of CA$0.45 each for a period of two years from the date of issuance," stated the company.
Eric Sprott placed the lead order for CA$2 million. Sprott will subscribe for 6,666,667 units. Also, Palisade Global Investments will subscribe for 2.75 million units and Venture Ad Network will subscribe for 600,000 units, according to the company.
"Aben Resources is very pleased to welcome Eric Sprott as a large strategic shareholder of the company. Mr. Sprott is one of the world's premier precious metals investors and a respected leader in the investment community," said Jim Pettit, Aben's chief executive officer. "His participation in this financing speaks to the high-grade discovery and future potential of Aben Resources' Forest Kerr project in the Golden Triangle region of British Columbia."
Aben plans to expand its current drill program 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 ton gold over 6.0 meters within 38.7 g/t Au over 10.0 meters from 114.0 to 124.0 meters, said Pettit.
Aben is awaiting assay results from an additional seven drill holes from ongoing drilling, all of which were drilled at the North Boundary zone and will provide updates as results become available.
"The company intends to utilize the proceeds from the private placements to expand its 2018 exploration and drilling program at its Forrest Kerr gold project located in the Golden Triangle, British Columbia, and for general working capital purposes," noted the company.
The TSX Venture Exchange must approve the private placement, and all securities are subject to a four-month-and-one-day hold period. Finder fees may be payable in connection with the private placement, all in accordance with the policies of the TSX Venture Exchange.
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