Discovery Silver Expected to Take a 9.9% Strategic Stake as Abitibi Strengthens Its Balance Sheet to Advance B26

Abitibi Metals Corp. (CSE:AMQ) (OTCQB:AMQFF), a Québec-focused mineral exploration company advancing the B26 polymetallic deposit, has announced a non-brokered financing of up to C$30.75 million that is expected to bring in Discovery Silver Corp. as a new strategic shareholder.

If the offering closes as planned, Discovery is expected to acquire approximately 9.9% of Abitibi’s issued and outstanding common shares on a non-diluted basis, giving Abitibi not only a major new source of capital, but also a strategic investor with sector experience as the company continues advancing B26 and evaluating broader growth opportunities.

In connection with the closing, Abitibi and Discovery are also expected to enter into a participation agreement that, subject to certain conditions, would grant Discovery certain financing participation rights and other customary investor rights, allowing it to maintain its ownership position over time.

Abitibi President and Chief Executive Officer Jonathon Deluce described the investment as a strong endorsement of the progress and potential of the B26 Deposit. He also pointed to Discovery’s track record of generating shareholder returns through disciplined exploration, operational execution, and early identification of high-quality opportunities.

According to Deluce, that technical and industry experience could be valuable as Abitibi continues to advance exploration and development at B26 while also pursuing growth across its existing portfolio and through potential acquisitions.

Financing Structure and Use of Proceeds

The offering is expected to include 11,764,706 charity flow-through common shares priced at C$0.85 per share and 35,779,704 hard dollar common shares priced at C$0.58 per share, for total aggregate gross proceeds of up to C$30,752,228.

Abitibi said the gross proceeds from the charity flow-through portion are expected to be used to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures on the company’s Québec-based projects. The net proceeds from the hard dollar portion are expected to be used for exploration and development activities, as well as general corporate purposes.

That gives the financing a dual purpose. It is expected to support continued work on the ground in Québec while also strengthening the company’s broader capital position as it moves into its next stage of growth.

A New Strategic Relationship at an Important Time

Strategic financings can often matter as much for who is participating as for the amount being raised. In this case, Discovery Silver’s expected 9.9% position stands out as one of the most notable aspects of the transaction, adding a new industry-aligned shareholder as Abitibi continues to build around B26.

The financing remains subject to customary conditions, including receipt of all necessary regulatory approvals and completion of the company’s filing requirements with the Canadian Securities Exchange. All securities issued under the offering will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.

If completed as outlined, the transaction would leave Abitibi Metals with fresh capital for exploration and development and a new strategic partner on its shareholder registry as it continues advancing one of its key Québec assets.