Abitibi Metals Corp

The core investment case rests on a valuation gap relative to peers at comparable development stages. At current market figures, Abitibi Metals trades at an enterprise value of approximately C$128 million against a calculated in-situ resource value of C$12.4 billion, implying an EV-to-in-situ ratio of roughly 1%. By comparison, Foran Mining's McIlvenna Bay project, which was acquired by Eldorado Gold in early 2026 for approximately C$3.8 billion, traded at a ratio of around 20% at development stage. FireFly Metals, at development stage with a larger resource base, trades at approximately 4%. The discount at which B26 is valued relative to those assets reflects its current exploration classification rather than any fundamental deficiency in the deposit itself.

The broader market context reinforces the opportunity. Canadian mining mergers and acquisitions activity reportedly reached C$62.1 billion in 2025, a 220% increase year-over-year, driven by consolidation in copper, gold, and critical minerals. Quebec has drawn particular attention from acquirers given its infrastructure base, established regulatory framework, and political stability. B26's VMS profile, copper and gold weighting, and location within a historically productive camp position it within the category of assets that have attracted recent transaction activity.

At spot prices as of late January 2026, the indicated CuEq grade rises to 2.59% and the inferred grade to 2.55%, reflecting the deposit's leverage to current commodity prices rather than the conservative metal prices used in the base-case resource estimate.

The executive team brings relevant experience from across the mining development cycle. Jon Deluce, CEO and President, is a chartered accountant with over a decade of experience in mineral exploration and the capital markets, having previously negotiated joint venture partnerships with Kirkland Lake Gold and Barrick. Dave Bernier, COO, has more than 30 years of mine development and operational experience in Canada, including serving as COO of Foran Mining during the period in which the McIlvenna Bay project was advanced toward construction. Laurent Eustache, Executive Vice President, has over 20 years of experience in the mining industry, including roles at Aurizon Mines and Agnico Eagle, and has served as a portfolio manager at SIDEX, Quebec's mining exploration fund. Louis Gariepy, VP Exploration, spent over 30 years in international mining, including as VP Exploration at O3 Mining, where his work contributed to a roughly C$200 million acquisition by Agnico Eagle.

The advisory board includes Eric Kallio, former Executive VP Exploration Strategy at Agnico Eagle and former SVP Exploration at Kirkland Lake Gold, and Craig Parry, co-founder of Vizsla Silver and founder and former CEO of IsoEnergy. Chris Leavy, a former Chief Investment Officer at BlackRock overseeing $115 billion in equity assets, adds institutional capital markets depth.

The company is currently executing a fully funded Phase 4 drill program of 40,000 metres, financed through to the first quarter of 2027. The program has three components: resource-improvement drilling to convert inferred material within the existing resource boundary; expansion drilling to extend the deposit laterally and at depth; and a first regional exploration program targeting five to six high-priority areas along two separate trend corridors, each covering approximately 8.3 kilometres of limited past exploration. The deposit remains open in multiple directions, with mineralisation identified to below 1,250 metres depth.

The technical work programme running alongside drilling includes an internal scoping study expected in the second quarter of 2026, a Preliminary Economic Assessment targeted for the first quarter of 2027, and the initiation of metallurgical and geotechnical testing. Environmental baseline studies and indigenous and community engagement are also underway. The 2026 programme marks the company's first regional exploration effort, with VTEM and gravimetric survey data identifying several targets in felsic volcanic sequences interpreted as geologically analogous to the B26 host sequence.

Since Abitibi Metals optioned the project in late 2023, the resource has grown by 124%, from a combined 11.3 million tonnes at 2024 to 25.3 million tonnes at the 2026 estimate, through 56,853 metres of drilling across three phases at a discovery cost of C$0.025 per pound of copper equivalent.

As of mid-February 2026, the company reported a cash balance of approximately C$22 million with 187.7 million shares issued and outstanding and a fully diluted share count of 192.5 million. The warrant overhang is minimal, with only 0.6 million broker warrants outstanding at an average exercise price of C$0.74. The company reports an industry-low general and administrative cost structure and a drilling cost of C$250 to C$300 per metre. Management and the Deluce family office hold a combined 20% of shares, with institutions accounting for 40% and SOQUEM holding 5%. Haywood Securities covers the stock with a Buy rating and a C$1.50 price target, implying approximately 24% upside from the February 2026 reference price of roughly C$1.21.

• Commodity Price Volatility: Project economics are sensitive to fluctuations in copper, gold, silver, and zinc prices. The base case resource uses conservative assumptions of US$4.50/lb copper, US$2,500/oz gold, US$30/oz silver, and US$1.35/lb zinc, all materially below early-2026 spot prices. At spot, the indicated CuEq grade rises to 2.59% and inferred to 2.55%, providing a meaningful buffer against downside price movements. The polymetallic deposit, with revenue contributions across four commodities, reduces dependence on any single metal. Copper and gold together represent approximately 63% of in-situ value, with the copper weighting providing leverage to energy transition demand.
• Regulatory & Permitting Risks: Advancing B26 from feasibility into development will require environmental approvals, indigenous consultation, and regulatory permits, all of which carry inherent timeline uncertainty. Quebec ranks consistently among the top mining jurisdictions globally, and the project benefits from existing infrastructure, including a 120kV power line, substation, and all-season road access, reducing the permitting burden relative to a greenfield site. The Selbaie Camp's production history of 53 million tonnes supports a more predictable regulatory pathway. Indigenous and community engagement is underway concurrently with technical studies rather than sequentially, which is consistent with reducing permitting timeline risk.
• Technical & Operational Risks: The resource remains at exploration stage, does not constitute a mineral reserve, and has not demonstrated economic viability. The three distinct mineralised zones carry different metallurgical characteristics that will need to be addressed in process design, and metallurgical and geotechnical testing results are pending. The mineral resource estimate will be subject to revision as additional drilling data is incorporated and feasibility-stage engineering constraints are applied. The COO's experience advancing the McIlvenna Bay VMS project through construction at Foran Mining, and the VP Exploration's work at O3 Mining through an Agnico Eagle acquisition, provide directly relevant execution track records at comparable development stages.
• Financing Risk: The company's C$22 million cash balance funds the current 40,000-metre programme through Q1 2027, but advancing through PEA, feasibility, and construction will require substantially more capital. Additional equity financing would be dilutive, and terms of any future raise will depend on market conditions and technical study outcomes. Mitigating factors include a 40% institutional shareholder base, the Deluce family office's 7% position, and a demonstrated ability to raise C$44 million across four private placements since late 2023. A completed PEA, targeted for Q2 2027, would materially reduce information asymmetry and improve access to project-level debt financing.
• Earn-in Structure & Partner Risk: Abitibi Metals holds an option to earn up to 80% of B26 from SOQUEM, introducing dependency on maintaining the agreement in good standing and meeting work commitment thresholds. SOQUEM's mandate as a government-backed entity focused on Quebec mineral development provides greater structural stability than a private counterparty, and its existing 5% shareholding in Abitibi Metals creates direct alignment of interests. The earn-in terms nonetheless represent an ongoing obligation that must be managed alongside the exploration and development programme.‍
• Execution Risk: Transitioning from exploration-stage resource to producing mine requires completing multiple sequential technical, regulatory, and financing steps over a multi-year horizon. The development timeline targets a PEA in early 2027 and the initiation of a feasibility study in the second half of 2027, placing any construction decision well into the future and creating exposure to changes in commodity and capital market conditions. The phased technical study approach, moving through an internal scoping study before committing to a full PEA and then feasibility, allows material issues to be identified and addressed at each stage before the capital requirements of the next are incurred. Management and the Deluce family office hold a combined 20% of shares, providing direct financial incentive for successful execution.

Abitibi Metals presents a defined profile: a high-grade polymetallic VMS deposit in a proven Quebec mining district, trading at a significant discount to peers at comparable or more advanced development stages. The resource has grown substantially since the option was executed; the company is funded through a meaningful near-term drill programme, and the technical study pathway through to a PEA is laid out, with identifiable catalysts. The management team has executed the relevant development transitions at comparable assets, and the advisory network includes individuals who have been involved in some of the more notable VMS transactions of the past several years. The primary variables from this point are the results of Phase 4 drilling on resource expansion, the outcome of the regional exploration programme, and the findings of the internal scoping study, expected in mid-2026.