QMX Gold Corp. [QMX-TSXV; QMXGF-OTCQX] shares were active Friday June 28 after the company said it is raising $3.96 million from a non-brokered private placement. The company said it will use proceeds from the financing to fund exploration activities in the Val d’Or, Quebec mining camp.
QMX is backed by a shareholder group that includes Osisko Gold Royalties Ltd. [OR-TSX, NYSE] with 11.6%, and Probe Metals Inc. [PRB-TSXV; PROBF-OTCQB], with 7.5%. The company is applying a systematic and methodical approach to targeting, drilling, and evaluating an extensive land package across 200 km2.
In addition to the land package, QMX owns the Aurbel gold mill and tailings facility located 15 km east of Val d’Or. In October, 2018, the company said it had entered into a custom milling agreement with Gowest Gold Ltd. [GWA-TSXV; GWSAF-OTC; 1GW-FSE]. Under the agreement, QMX said the Aubel mill would be the focus of an initial pilot program involving the processing of up to 120,000 tonnes of ore from Gowest’s Bradshaw deposit for one year. QMX said Gowest pledged to fund the restart of the crushing, grinding and flotation circuits, which were winterized in mid-2016 following the termination of mining activities at the Lac Herbin Mine.
The company has said it hopes to announce a NI 43-101-compliant resource estimate this summer for its Bonnefond South Target located on the Val d’Or East Zone property near the former Monique gold mine.
On Friday, QMX shares jumped 15.38% or $0.01 to $0.075 on volume of 888,000. The shares are trading in a 52-week range of $0.04 and 12.5 cents.
QMX said Friday it has arranged a non-brokered private placement of 39.6 million flow-through common shares at 10 cents a share, raising gross proceeds of $3.96 million. The offering is expected to close by July 12, 2019.
“2019 is an exciting year for QMX, with the initial resource estimate at Bonnefond expected shortly and the mill progressing towards start up later in the summer,” said QMX President and CEO Brad Humphrey.
“At the same time, our team continues to evaluate and develop additional promising targets across our extensive land package in Val d’Or and assess further custom milling opportunities growing our cash flow potential from this strategically located asset,” Humphrey said.
QMX recently announced the result from 10 drill holes, which cover the results from the second half of the definition drilling program at the Bonnefond target. The program was completed to support the drive for an initial resource estimate.
Highlights include drill hole 17315-19-077, which returned 5.85 g/t gold over 6.7 metres. Drill hole 17315-19-079 returned 14.65 g/t gold over 1.4 metres. The last 10 drill holes confirmed the geological model south of the intrusion, the continuity of the mineralization and the gold grades in the shear zones. Within these shear zones gold grades are associated with quartz-carbonate-tourmaline veins and strong sericite-albite-fuchsite alteration.