September 11, 2008 Abacus Closes $3,453,000 Non-Brokered Private Placement
VANCOUVER; September 11, 2008. Abacus Mining and Exploration Corp. ("Abacus") (AME-TSX.V) announces that the non-brokered private placement announced on August 15, 2008, has now closed. Abacus issued 11,500,666 Flow-Through Units at a price of $0.30 per Flow-Through Unit to raise gross proceeds of $3,453,799.80.
"We are pleased to have completed this financing given current events in the markets," said Doug Fulcher, President and CEO. "The private placement was significantly over subscribed, but the company elected to refrain from further dilution at this time. We continue to expand on the Afton -- Ajax project with the new resource expected shortly and the Preliminary Economic Assessment to follow."
Each Flow-Through Unit consisted of one common share issued on a flow-through basis and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one non-flow-through common share of Abacus until March 10, 2010, at a price of $0.50 per share. Proceeds from the flow-through funds raised from the offering will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Canada Income Tax Act) and will be renounced for the 2008 income tax year.
Finders were paid cash commissions totaling $191,891.99 and were issued a total of 12,000 Finders' Units and 760,246 Finders' Warrants. Each Finders' Unit consists of one non-flow-through share of Abacus and one half of one warrant, with each whole warrant entitling the holder to purchase one common share of Abacus until March 10, 2010 at a price of $0.50 per share. Each Finders' Warrant entitles the holder to purchase one common share of Abacus until March 10, 2010, at a price of $0.30 per share. Finders' fees represent 6% of the gross proceeds of subscriptions identified by the finder (payable in cash and/or Finders' Units, at the election of the Finders) and 7% of the number of Units identified by the Finder (payable by the issuance of Finders' Warrants).
All of the securities issued have a hold period expiring on January 11, 2009.
On Behalf of the Board, ABACUS MINING & EXPLORATION CORPORATION
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corp. (the "Company") 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 market prices, exploitation and exploration successes, and 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 expressly required by 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.
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
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