The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News – May 1, 2018
Aben Resources Ltd. April 23 announced that it has raised C$2.32 million, funds the company will use for this year's exploration and drill program at its Forrest Kerr gold project in British Columbia's Golden Triangle region and for general working capital purposes.
"With the closing of these financings, the company is well positioned, with over C$3.5 million in the treasury, to fund the upcoming drill programs at its flagship Forrest Kerr gold project," said Aben President and CEO Jim Pettit.
The 2017 program at Forrest Kerr encountered high-grade gold, copper and silver mineralization at the Boundary North zone.
One such hole, FK17-04, cut 10 meters of 6.7 grams per metric ton gold, 6.4 g/t silver and 0.9 percent copper.
The next hole, FK17-05, cut 122 meters averaging 1.2 grams per metric ton gold, 1.8 g/t copper and 0.21 copper, including a 6-meter high-grade core averaging 21.5 g/t gold, 28.5 g/t silver and 3.1 percent copper.
"We are keen to commence the drilling after the success of last year`s summer drill program," said Pettit.
Aben's non-brokered private placement financing involved the issuance of 6.28 million units at C12.5 cents each, for gross proceeds of C$785,375. Each unit consists of one Aben share and one warrant that entitles the holder to purchase an additional share at C25 cents for a period of three years.
Additionally, Aben issued 8.55 million flow-through units at C18 cents each for gross proceeds of C$1.54 million. Each flow-through unit consists of one flow-through share and a warrant that entitles the holder to purchase an additional non-flow-through share at C12 cents for a period of three years.
Under a provision of Canada's Income Tax Act, mineral exploration companies can transfer exploration expenses to individual investors that purchase the flow-through shares. Most exploration companies do not generate revenues, so they do not need the tax write off, however, the flow-through investor can apply his portion of the exploration expense to reduce or eliminate his tax liability. The exploration company must spend the flow-through dollars raised on a qualifying mineral project in Canada within two years of closing the financing.
Aben plans to use the funds it raised from selling flow-through shares on further exploration at Forrest Kerr.
"(W)e are confident in the potential at Forrest Kerr given the newly discovered and historic high-grade mineralization there as well as the numerous untested gold-in-soil anomalies present," said Pettit.
–SHANE LASLEY
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