QuestEx Gold and Copper Ltd. [QEX-TSXV] said Friday April 16 that it has raised $11.1 million from a non-brokered private placement that will be used to fund exploration in the Golden Triangle and Toodoggone district in British Columbia.
QuestEx shares advanced on the news rising 9.6% or $0.09 to $1.03 and now trade in a 52-week range of $1.05 and 35 cents.
The private placement consisted of 9.06 million flow-through common shares priced at 83 cents per share and 5.9 million non-flow-through common shares at 60 cents each.
“With the closing of this financing, we now have the financial resources necessary to conduct the kind of consequential exploration on those properties that we believe will considerably enhance value for shareholders,” said QuestEx CEO Joe Mullin.
Skeena Resources Ltd. [SKE-TSXV] acquired 5.47 million common shares under the offering, representing a 14.1% stake I QuestEx on a non-diluted basis. Under an investor rights agreement, Skeena will have the right to maintain its pro-rata ownership stake in QuestEx in any future financings. Skeena will also retain the option to increase its interest in QuestEx to 19.9% and appoint one director to the company’s board.
Newmont Corp. [NGT-TSX, NEM-NYSE], the world’s largest gold miner, acquired 2.42 million common shares under the offering to maintain its 16% equity interest in QuestEx on a non-diluted basis.
Gross proceeds from the issuance of flow through shares will be used by the company to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as defined under the Income Tax Act (Canada) related to the company’s projects in B.C.
“We would like to thank our largest shareholder, Newmont, and new strategic investors Skeena Resources and an investment group led by Adam Lundin for their support in this financing,” Mullin said.
The property portfolio includes the company’s flagship Castle property, a porphyry copper-gold project located in the Red Chris mining district of the Golden Triangle.
Other properties include KSP, North ROK, Coyote and Kingpin in the Golden Triangle and Sofia in the Toodoggone district, and Heart Peaks and Hit in other strategic districts of B.C.
QuestEx said its 2021 exploration plans are advancing well. Its exploration plans include approximately 6,000 metres of drilling on high-priority gold and copper targets.
On the KSP property, drilling will focus on the Inel gold prospect where QuestEx has announced its intention to produce a maiden gold resource by end of 2021.