Abcourt Mines has finalised a $8m secured financing facility with Nebari Natural Resources Credit Fund II in a critical step towards reopening the Sleeping Giant mine in Quebec, Canada.

The Sleeping Giant is situated midway between Amos and Matagami in the Abitibi region of Quebec and falls within the jurisdiction of the Quebec government's Plan Nord.

The property comprises four mining leases spanning 458 hectares, and 69 mining claims.

The 36-month loan agreement bears interest based on a floating rate per annum, combining the three-month term secured overnight financing rate (SOFR) and an additional 12% per annum. The SOFR will be considered as 4% if it falls below this threshold.

The facility allows for early repayment after the first year, with a 25% absolute return on the prepaid principal amount for the lender.

Abcourt has issued 87,040,000 non-transferable warrants to the lender, exercisable at C$0.0625 per common share until 3 July 2028, with terms subject to adjustments based on prepayments and TSX Venture Exchange policies.

Abcourt president and CEO Pascal Hamelin stated: “Closing this transaction with Nebari is a major step toward starting production at the Sleeping Giant mine.

“This investment of $8m of non-dilutive capital offers us solid operational flexibility going forward and allows the company to develop the Sleeping Giant mine toward a commercial production status.”

The company has also incurred an arrangement fee of $120,000 and will pay a monthly administration fee of $2,500 post-closing date.

Security arrangements for the loan include a priority senior security on all of Abcourt's properties, subject to certain permitted liens. This encompasses real property interests, mining rights, inventory and equipment.

The funds will be utilised for essential operations to initiate gold production.

Immediate plans include constructing a sleep camp and kitchen, continuing work on tailing facilities, commencing production in the upper level of the mine and developing lower levels to open new mining fronts.

"Abcourt Mines finalises $8m loan to reopen Sleeping Giant mine in Quebec" was originally created and published by Mining Technology, a GlobalData owned brand.

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