Q2 Metals raises $70 million for Quebec lithium project
Q2 Metals Corp. [QTWO-TSXV, QUEXF-OTCQB, 458-FSE] has raised $70 million from a private placement of common shares and flow-through shares. The company said it will use the proceeds to advance its Cisco Lithium Project, which is located in the Eeyou Istchee, James Bay region of Quebec. The Cisco deposit is situated just 6.5 kilometres from the Billy Diamond Highway, providing access to rail infrastructure in the town of Matagami, 150 kilometres to the south, with connections to deep sea ports.
The project hosts and inferred pit-constrained resource of 270 million tonnes of grade 1.36% Li20 at a 0.4% Li20 cut-off grade, and an additional underground-constrained resource of 24 million tonnes of grade 1.34% Li20 inferred at a 0.7% Li20 cut-off grade.
Together, the company has said these estimates support a combined inferred resource of 295 million tonnes of grade 1.36% Li20. The deposit remains open along strike, with several additional high-priority targets identified across the broader 41,253-hectare project area.
The company said the 2026 exploration program is ongoing, with a primary focus on infill drilling aimed at advancing the resource towards an indicated classification. The program includes targeted expansion drilling and regional exploration designed to evaluate high priority targets surrounding the Cisco deposit across the broader project area.
Meanwhile, the company has closed a previously announce private placement of 20.4 million common shares priced at $2.45 per share for gross proceeds of $50 million, an amount that includes the full exercise of the underwriters’ option (raising $10 million), and 5.5 million common shares that qualify as flow-through shares within the meaning of the Income Tax Act (Canada) at a price of $3.60 per flow-through share, raising gross proceeds of $20 million.
On Tuesday, Q2 Metals shares eased 4.14% or 13 cents to $3.01. The shares trade in a 52-week range of $3.28 and 43 cents.
The company has said a geological model underpinning the inferred mineral resource estimate interprets a single continuous, principal spodumene pegmatite body ranging in true thickness from over 2.0 metres to over 450 metres, extending over a strike length of 1.8 kilometres, with multiple associated proximate structures.
An exploration target estimated at 44 to 67 million tonnes of mineralized material with a grade ranging between 0.88% to 1.35% Li20 has been prepared for the geology environment beyond the current resource estimate. Assays from 75 drill holes, representing 33,343 metres up to drill hole CS25-076 were used to inform the resource estimate.
The 2026 exploration target is constrained to an area immediately surrounding the deposit and does not include prospective geology and targets that the company has identified outside of the deposit area. The 2026 program is primarily focused on infill drilling towards indicated resource definition for inclusion in an inaugural preliminary economic assessment, targeted for 2027.