Abitibi Files Final Short Form Prospectus in Connection with a Bought Deal Public Offering of Common Shares and Flow-Through Shares

Rhea-AI Summary

Abitibi Metals Corp (OTCQB: AMQFF) filed a final short form prospectus in Canada for a bought-deal offering totaling $14,004,000 gross proceeds. The Offering comprises 11,430,000 common shares at $0.35 (gross $4,000,500) and 17,550,000 flow-through shares at $0.57 (gross $10,003,500). Closing is expected on or about Dec 16, 2025, subject to customary conditions and regulatory approvals.

The Underwriters include BMO Capital Markets as lead, with a 30-day over-allotment option to buy up to 4,347,000 additional Offered Securities (max 15%). Flow-through shares will have tax renunciation only to original subscribers; redistributed shares will not qualify as flow-through for charities or subsequent purchasers. The Final Prospectus is available on SEDAR+.

Positive

• Gross proceeds of $14,004,000
• Flow-through component raises $10,003,500 for exploration expenses
• Over-allotment option up to 4,347,000 shares (15%) for stabilization

Negative

• Offered securities subject to customary closing conditions and regulatory approvals
• Flow-through status does not extend to charities or subsequent purchasers

News Market Reaction

%

1 alert

% News Effect

On the day this news was published, AMQFF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Offered Common Shares: 11,430,000 shares Common Share Price: $0.35 per share Common Share Proceeds: $4,000,500 +5 more

8 metrics

Offered Common Shares 11,430,000 shares Common shares at $0.35 under the Offering

Common Share Price $0.35 per share Price for Offered Common Shares in prospectus

Common Share Proceeds $4,000,500 Gross proceeds from Offered Common Shares

Flow-Through Shares 17,550,000 shares Flow-through shares issued under Offering

Flow-Through Price $0.57 per share Price for Flow-Through Shares in prospectus

Flow-Through Proceeds $10,003,500 Gross proceeds from Flow-Through Shares

Total Gross Proceeds $14,004,000 Total gross proceeds from the Offering

Over-Allotment Shares Up to 4,347,000 shares Additional Offered Securities under Over-Allotment Option

Market Reality Check

Price: $0.5242 Vol: Volume 164,299 vs 20-day ...

normal vol

$0.5242 Last Close

Volume Volume 164,299 vs 20-day average 146,151 (relative volume 1.12x) normal

Technical Price 0.27425 is trading above 200-day MA of 0.20 and 14.51% below 52-week high

Peers on Argus

Gold peers show mixed but mostly positive moves, with VELOCITY MINERALS up 10.84...

Gold peers show mixed but mostly positive moves, with VELOCITY MINERALS up 10.84%, ALMADEN MINERALS up 14.71%, GOLD SPRNGS RESOURCE up 19.53%, NOVO RES CORP up 2.34%, and ROYAL ROAD MINERALS down 2.90%, suggesting stock-specific factors around this financing.

Historical Context

5 past events · Latest: Nov 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 20	Drill results	Positive	+13.4%	World-class B26 intercepts with high CuEq grades and extended mineralization.
Oct 30	Drill results	Positive	-0.5%	Phase 3 assays extend B26 Western Copper-Gold Zone with strong CuEq intervals.
Oct 28	Management change	Positive	+10.8%	Mining veteran joins advisory board to support next phase of growth.
Oct 17	Drill update	Positive	-14.8%	Phase 3 step-outs expand B26 mineralization with pending assays.
Oct 09	Drill results	Positive	+9.9%	Phase 3 drill program expanded after strong CuEq intercepts at B26.

Pattern Detected

Recent B26 drill and management news often saw sharp but mixed price reactions, with several strong gains and one double-digit decline, indicating volatile responses to exploration updates.

Recent Company History

Over the last few months, Abitibi reported multiple high-grade drill results and expansion of the B26 Phase 3 program to 20,000 metres, alongside appointment of an experienced mining advisor. Price reactions ranged from a 14.79% drop on October 17 to gains of 13.38% and 10.8% on strong assay and management news. Against this backdrop of aggressive drilling and advisory strengthening, the current offering adds a capital-raising element to an exploration-focused story.

Market Pulse Summary

This announcement details a bought-deal financing totaling $14,004,000 through common and flow-throu...

Analysis

This announcement details a bought-deal financing totaling $14,004,000 through common and flow-through shares, with an additional over-allotment option and specified tax treatment under Canadian legislation. It follows months of intensive B26 drilling and advisory board strengthening. Key factors to monitor include completion of the offering by the targeted December 16 date, how proceeds are deployed alongside the 20,000 metre program, and future updates on drilling progress.

Key Terms

short form prospectus, flow-through shares, over-allotment option, canadian exploration expenses, +4 more

8 terms

short form prospectus regulatory

"it has filed a final short form prospectus (the "Final Prospectus") in each"

A short form prospectus is a condensed legal document that gives investors the key facts about a company’s new securities offering—such as the offering size, price range, main financial highlights, and principal risks—without repeating full historical disclosures. It matters because it speeds up and simplifies the process of buying newly issued stock or bonds while still giving investors a focused “fact sheet” to compare the deal’s terms and risks, much like a product brochure that complements an existing full manual.

flow-through shares financial

"common shares of the Company issued as "flow-through shares" (the "Flow-Through Shares""

Flow-through shares are a special class of stock that lets a company pass eligible tax deductions for activities like resource exploration or development directly to the investor who buys the shares. For investors this can lower taxable income and reduce tax bills, making the investment more tax-efficient and partially offsetting higher risk—think of it as getting a tax rebate that helps pay for a riskier bet on future resource discoveries.

over-allotment option financial

"The Company has granted the Underwriters an over-allotment option (the "Over-Allotment Option")"

An over-allotment option is a special agreement that allows underwriters to sell more shares than initially planned if demand is high. Think of it like a retailer offering extra units of a popular product to meet additional customer interest. This option helps ensure the full sale is completed and can also give investors extra shares if they want more.

canadian exploration expenses regulatory

"the Company will only renounce "Canadian exploration expenses" (as defined in the Income Tax Act"

Canadian exploration expenses are costs incurred to look for and evaluate mineral resources in Canada that Canadian tax rules allow to be claimed as deductible exploration spending. Investors care because these expenses can be flowed through as tax benefits or deductions, lowering taxable income for eligible shareholders and effectively acting like a tax rebate that can improve after‑tax returns and reduce a mining company's net capital needs — similar to getting a future tax coupon for money spent today.

income tax act (canada) regulatory

"for purposes of the Income Tax Act (Canada) and the Taxation Act (Québec)"

The Income Tax Act (Canada) is the federal law that sets the rules for how individuals and businesses in Canada calculate, report and pay income taxes, including what counts as taxable income, allowable deductions, credits and the applicable tax rates. Investors care because those rules determine after‑tax profits, how dividends and capital gains are treated, and which tax incentives affect corporate cash flow and valuations—like a rulebook that decides how much of earnings actually reach shareholders.

taxation act (québec) regulatory

"the Income Tax Act (Canada) and the Taxation Act (Québec)) to the original subscriber"

The Taxation Act (Québec) is the provincial law that sets out how taxes are assessed, collected and administered in Quebec, including rules on taxable income, deductions, credits and filing obligations for individuals and businesses. Investors care because it shapes a company’s after‑tax profits, cash flow and the tax benefits or expenses they will face — like a rulebook that determines how much of a company’s earnings are kept versus paid to the province.

u.s. securities act regulatory

"registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")"

A U.S. securities act is a federal law that requires companies to disclose clear, detailed information before offering stocks or bonds to the public and prohibits false or misleading statements. Think of it as a product label and consumer-protection rule for investments: it helps investors know what they’re buying and provides legal remedies if information is withheld or deceptive, which can affect confidence, pricing and the ability of companies to raise money.

bookrunner financial

"offering (the "Offering") led by BMO Capital Markets, as sole bookrunner and lead underwriter"

A bookrunner is the lead bank or financial firm that organizes and manages a new securities offering, acting like a project manager who sets the price range, collects investor demand, and decides how shares are allocated. For investors, the bookrunner’s choices and reputation influence the final price, how many shares each buyer receives, and the overall chance the deal succeeds — similar to how a trusted referee shapes a fair and well-run auction.

AI-generated analysis. Not financial advice.

Final Short Form Prospectus is Accessible on SEDAR+

London, Ontario--(Newsfile Corp. - December 9, 2025) - Abitibi Metals Corp. (CSE: AMQ) (OTCQB: AMQFF) (FSE: FW0) ("Abitibi" or the "Company") is pleased to announce that, in connection with its previously announced "bought-deal" offering (the "Offering") led by BMO Capital Markets, as sole bookrunner and lead underwriter (the "Lead Underwriter"), together with Haywood Securities Inc., as co-lead manager, ATB Securities Inc., Desjardins Securities Inc., Paradigm Capital Inc. and Stifel Nicolaus Canada Inc. (collectively, with the Lead Underwriter, the "Underwriters"), it has filed a final short form prospectus (the "Final Prospectus") in each of the provinces of Canada to qualify the distribution of: (i) 11,430,000 common shares of the Company (the "Offered Common Shares") at a price of $0.35 per Offered Common Share for gross proceeds of $4,000,500; and (ii) 17,550,000 common shares of the Company issued as "flow-through shares" (the "Flow-Through Shares" and, together with the Offered Common Shares, the "Offered Securities") at a price of $0.57 per Flow-Through Share for gross proceeds of $10,003,500, for total gross proceeds to the Company of $14,004,000.

Closing of the Offering is expected to take place on or about December 16, 2025, or such other date as may be agreed upon by the Company and the Lead Underwriter, but in any event not later than 42 days following the date hereof (the "Closing Date"). Closing of the Offering is subject to customary closing conditions, including the receipt of all applicable regulatory approvals.

The Company has granted the Underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part, at the sole discretion of the Lead Underwriter, on behalf of the Underwriters, for a period of 30 days from and including the Closing Date, to purchase up to 4,347,000 additional Offered Common Shares and/or additional Flow-Through Shares at their respective offering prices, provided that the maximum number of additional Offered Securities issued pursuant to the Over-Allotment Option does not exceed 15% of the aggregate number of Offered Securities sold under the base Offering, solely to cover over-allotments, if any, and for market stabilization purposes.

The Company understands that purchasers of Flow-Through Shares under the Offering intend to: (i) donate some or all of such Flow-Through Shares to registered charities, who may sell such Flow-Through Shares to purchasers arranged by the Underwriters, and/or (ii) sell some or all of such Flow-Through Shares to purchasers arranged by the Underwriters, in each case on the Closing Date or the closing date for the Over-Allotment Option, as applicable, and at a price of $0.35 per share (such Flow-Through Shares described in (i) and (ii), collectively, the "Redistributed Shares"). The Flow-Through Shares will only qualify as "flow-through shares" for purposes of the Income Tax Act (Canada) and the Taxation Act (Québec) for the original subscriber and will not qualify as "flow-through shares" for a registered charity or subsequent purchaser of the Redistributed Shares and consequently the Company will only renounce "Canadian exploration expenses" (as defined in the Income Tax Act (Canada) and the Taxation Act (Québec)) to the original subscriber of the Flow-Through Shares. The Final Prospectus qualifies the distribution of the Flow-Through Shares as well as the subsequent distribution of the Redistributed Shares on the Closing Date or the closing date for the Over-Allotment Option, as applicable.

Delivery of the Final Prospectus and any amendment will be satisfied in accordance with the "access equals delivery" provisions of applicable securities legislation. The Final Prospectus is accessible on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile.

An electronic or paper copy of the Final Prospectus and any amendment may be obtained, without charge, from BMO Nesbitt Burns Inc., by mail at Brampton Distribution Centre c/o The Data Group of Companies, 9195 Torbram Road, Brampton, ON, L6S 6H2, by telephone at 905-791-3151 (ext. 4312) or by email at torbramwarehouse@datagroup.ca, by providing BMO Nesbitt Burns Inc. with an email or address, as applicable. The Final Prospectus contains important, detailed information about the Company and the Offering. Prospective investors should read the Final Prospectus before making an investment decision.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall any sale of securities occur in any jurisdiction, including the United States, in which such offer, solicitation or sale is unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any securities laws of any state of the United States and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States unless an exemption from such registration requirements is available.

On behalf of the Board of Abitibi Metals Corp.

"Jonathon Deluce"
President & CEO, Director

About Abitibi Metals Corp.

Abitibi Metals Corp. is dedicated to acquiring and exploring mineral properties within Quebec, with a particular emphasis on high-quality base and precious metal assets that offer significant potential for growth and expansion.

For more information, please contact Jon Deluce (President & CEO, Director) at 226-271-5170, email info@abitibimetals.com, or visit https://www.abitibimetals.com.

Cautionary Notes and Forward-Looking Statements

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will" and "expected" and similar expressions are intended to identify forward-looking statements. These statements include statements regarding the terms and completion of the Offering, the expected closing date of the Offering, the exercise of the Over-Allotment Option, the ability to obtain all approvals in connection with the Offering, the ability to incur and renounce eligible flow-through expenditures, the exploration and development potential of the Company's properties and the significance of previous exploration results. Although Abitibi believes that the expectations reflected in such forward-looking statements and/or information are reasonable, readers are cautioned that actual results may vary from the forward-looking statements. The Company has based these forward-looking statements and information on the Company's current expectations and assumptions about future events. These statements also involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Company's annual information form, for the year ended December 31, 2024 available at www.sedarplus.ca under the Company's issuer profile. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Abitibi does not undertake any obligation to publicly update or revise any of these forward-looking statements except as may be required by applicable securities laws.

Not for distribution to U.S. news wire services or dissemination in the United States.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277493

FAQ

What is Abitibi Metals (AMQFF) raising in the bought-deal offering on December 9, 2025?

Abitibi is raising $14,004,000 via 11,430,000 common shares at $0.35 and 17,550,000 flow-through shares at $0.57.

When is the expected closing date for Abitibi's offering (AMQFF)?

Closing is expected on or about December 16, 2025, or no later than 42 days from the filing date, subject to conditions.

What over-allotment option did Abitibi provide in the prospectus for AMQFF?

The Underwriters have a 30-day option to purchase up to 4,347,000 additional Offered Securities, equal to 15% of the base Offering.

How do the flow-through shares in Abitibi's offering affect tax treatment for charities or resale?

The flow-through shares will only qualify as flow-through for the original subscriber; charities or subsequent purchasers of redistributed shares will not receive flow-through tax treatment.

Where can investors access Abitibi Metals' final short form prospectus (AMQFF)?

The Final Prospectus is available on SEDAR+ under Abitibi Metals' issuer profile and can be requested from BMO Nesbitt Burns without charge.