Aben Resources (ABN.V) is monetizing its discovery hole by raising C$4M in a hard-dollar financing with Eric Sprott as lead order. Sprott will purchase half of the financing (which might be upsized as we think there’s more demand than the initially announced C$4M), whilst Palisade Global Investments and Venture Ad Network will also invest C$1M.
As mentioned before, it’s a hard dollar financing priced at C$0.30 with each unit consisting of one common share and a full warrant allowing the warrant holder to purchase an additional share of Aben for C$0.45. As we mentioned in a previous update report, we were expecting to see Aben raise money on the back of its ultra high-grade discovery hole, enabling the company to expand its drill program to get a better understanding of the complex nature of the gold system.
The Aben share price is still holding up fine, despite the turmoil on the gold market. Keep in mind there’s a C$0.125 financing becoming tradeable at the end of this week, so we might see some weakness in the share price. The company’s share price has more than doubled from the C$0.19 when we first discussed Aben Resources, and cautious investors could consider taking some money off the table. Keep in mind though, the assay results of 7 more holes could be around the corner.
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The author has a long position in Aben Resources, but could take some profits off the table at any given time. Aben is a sponsor of the websites. Please read the disclaimer
