Abcourt Mines (TSX-V:ABI) has entered into a non-binding term sheet with Glencore (LSE:GLEN) to increase its senior secured debenture financing from US$30–40 million ($42.7–56.9 million).
The proposed increase follows the original financing announced in January, when Glencore made an initial US$18.125 million tranche available to the Canadian gold developer.
Under the revised arrangement, the second tranche would increase from US$11.875 million to US$21.875 million. Its expected disbursement has also been brought forward from December 2026 or January 2027 to around 12 August.
Abcourt says no other material changes are proposed to the original debenture terms.
The company notes it intends to use the funds to repay a US$12 million secured credit facility from Nebari Natural Resources Credit Fund II, finance exploration and capital expenditure at the Sleeping Giant Gold Project and Flordin Gold Project in Québec, Canada, and provide additional working capital.
CEO Pascal Hamelin says the refinancing would give Abcourt greater flexibility to advance the two projects.
“By converting short-term debt into long-term liabilities, we optimise our financial structure with a significantly lower interest rate and an extended amortization period,” Hamelin says.
“Accelerating this financing allows us to propel our exploration efforts and advance the development of our key projects: Sleeping Giant and Flordin.”
As part of the proposed transaction, Abcourt will issue Glencore 46.94 million non-transferable warrants. Each warrant will be exercisable for one Abcourt share at $0.12.
Completion of the upsized debenture and warrant issue remains subject to definitive documentation and TSX Venture Exchange approval.
Abcourt owns the Sleeping Giant mine and mill and the Flordin property in northwestern Québec.
Write to France Pinzon at Mining.com.au
Images: Abcourt Mines
