Quebec Precious Metals (TSXV: CJC)
announced Friday that it has closed a C$6.5 million bought deal
private placement through an agreement between the company and a
syndicate of underwriters led by Laurentian Bank Securities
The entire financing consisted of the offering of 8.90 million
charity flow-through common shares at C$0.40 per share, 7.10 millon
Quebec flow-through common shares at C$0.29 per share and 4.17
million common shares (hard shares) at C$0.22 per share.
Shares of QPM opened at C$0.22 and traded at a high of C$0.25 on
Friday. The Quebec-based gold explorer has a market capitalization
of C$11.25 million.
Net proceeds from the sale of hard shares will be used by the
company for general corporate and working capital. Gross proceeds
from the charity and Quebec shares will be used for exploration on
the company’s flagship Sakami project as well as its other James
Quebec Precious Metals noted that Newmont Goldcorp has exercised
its right to increase its ownership to 19.9% on a partially diluted
basis by acquiring approximately 4.41 million common shares of the
company. This right was granted to Newmont on April 25, 2018
pursuant to an investor rights agreement between the companies.
Some insiders of the company, excluding Newmont, also subscribed
for a total of 592,718 hard shares of QPM.
QPM was created in June 2018 through a merger between Canada
Strategic Metals Inc. and Matamec Explorations Inc. The company
currently holds a large land position in the Eeyou Istchee James
Bay territory of Quebec, near Newmont’s Éléonore gold mine.
Source: FS – Mining B.
Quebec Precious Metals stock jumps 16% on Newmont investment