Alamos selling Oregon gold project to Q-Gold for $21 million
Alamos Gold Inc. [AGI-TSX, NYSE] has entered into a binding deal to sell its non-core Quartz Mountain gold project located in Lake County, Oregon to Q-Gold Resources Ltd. [QGR-TSXV, QGLDF-OTC] for a total consideration of up to $21 million and a 9.9% interest in Q-Gold.
The Quartz Mountain Project is an advanced-stage exploration project located in south-central Oregon. Over the years, approximately 100,000 metres has been conducted, with the majority of the work focused on the Crone Hill and Quartz Butte deposits, which host a measured and indicated resource of 12.1 million tonnes of 0.87 g/t gold or 339,000 ounces. On top of that is an inferred resource of 39.2 million tonnes of 0.91 g/t gold or 1.14 million ounces.
In a press release, Q-Gold said it has entered into a share exchange agreement dated March 31, 2025, with 0975828 B.C. Ltd. (the Target) and its sole shareholder Alamos Gold. Under the deal, Q-Gold said it intends to indirectly acquire the Quartz Mountain Project via the purchase of all the issued and outstanding shares of the Target. It said the property consists of 244 claims with approximately 2,000 hectares, of which Quartz Mountain is on 86 unpatented LODE mining claims covering 704 hectare, and Angel’s Camp is on 158 unpatented LODE mining claims covering 1,248 hectares in south-central Oregon. The Target’s indirect wholly-owned subsidiary Quartz Mountain Gold Ltd., holds a 50% interest in Angel’s Camp, together with the option to acquire the remaining interest and 100% interest in Quartz Mountain, in each case upon completion of permitting and a feasibility study respecting the Quartz Mountain Project.
Under the agreement, upon closing Q-Gold has agreed to pay or issue to Alamos the following:
- US$2.85 million in cash and such number of common shares representing 9..99% of Q-Gold’s issued and outstanding common shares immediately prior to the closing date, after taking into account any common shares of the company to be issued pursuant to the concurrent minimum $5.0 million financing, the terms of which will be finalized in the coming weeks.
- US$3.15 million in cash or common shares (at Alamos’ election) payable on the first anniversary of the closing date.
- US$2.5 million in cash or common shares (at Alamos’ election) payable on the second anniversary of the closing date.
- US$2.5 million in cash or common shares (at Alamos’ election) payable on the third anniversary of the closing date (collectively with the 12-month payment and the 24-month payment).
- US$5.0 million in cash or common shares (at Alamos’ election) payable on the earlier of (i) completion of a feasibility study in respect of the Quartz Mountain Project, and (ii) the company making a decision to commence construction of a mine on the Quartz Mountain Project.
- US$5.0 million in cash or common shares (at Alamos’ election) payable when the Quartz Mountain Project has been permitted (collectively with the anniversary payments and feasibility study payment.
Q-Gold is currently exploring for gold at the past-producing Foley Gold Mine in Mine Centre, Ontario. On Friday, Q-Gold shares were unchanged Friday at $0.06. The shares are trading in a 52-week range of 22 cents and $0.015.