Quebec Precious Metals Corp. [CJC-TSXV; CJCFF-OTCBB; YXEP-FSE] said Friday November 29 that it has raised $6.5 million from a bought deal private placement offering.
QPM also said it has been advised that Newmont Goldcorp Corp. [NGT-TSX; NEM-NYSE] has exercised its right to increase its stake in QPM to 19.9% on a partially diluted basis by acquiring 4.4 million common shares of the company. This right was granted to Newmont in April, 2019, under the terms of a investors rights agreement.
QPM is a gold explorer with a large land position in the highly-prospective Eeyou Istchee James Bay territory of northern Quebec, near Newmont Goldcorpâ€™s Eleonore gold mine. QPMâ€™s flagship project is the Sakami which has delivered significant gold grades and well-defined drill-ready targets.
QPMâ€™s goal is to rapidly explore this project to advance it to the mineral resource estimate stage. QPM has also said that defined targets on the Sakami property will be tested during the drilling program that is being designed and scheduled to commence later this year.
Meanwhile, in a press release Friday, QPM said it has raised $6.5 million from an offering of 8.9 million charity flow-through common shares at 40 cents per share, 7.1 million Quebec flow-through common shares priced at 29 cents per share, and 4.17 million common shares of the company at 22 cents each. The offering included the securities issued as a result of the partial exercise of an over-allotment offering by the underwriters.
Proceeds from the sale of the Charity and Quebec flow-through shares will be used to incur Canadian exploration expenses (as defined by the Income Tax Act (Canada)) on the Sakami project and other James Bay projects in Quebec.
On Friday, QPM shares advanced on the news, rising 16.3% or $0.035 to 25 cents. The shares are currently trading in a 52-week range of 21 cents and 40 cents.
The Sakami Project, covering 140 km2, lies about 90 km northwest of the Eleonore Mine. It straddles a contact of the Opinaca and La Grande geological sub-provinces, which offer a variety of settings in which to host gold deposits. Exploration work within and surrounding current project has dates back to the late 1950s. In the early 2000s, gold mineralization was discovered at surface near Sakami Lake. This led to the discovery of several mineralized areas hosting variable gold grades.
â€œWe continue to make significant progress at our 100%-owned Sakami gold project,â€ said QPM CEO Normand Champigny. â€œThe results from the summer surface program demonstrate the strength of the drill targets located along the 13-kilometre mineralized trend,â€ he said. â€œAt the La Point deposit, the soil geochemical survey has delineated many new targets over a distance of two kilometres to the west.â€
Champigny went on to say that these results represent a considerable potential upside for the La Pointe deposit.Â â€œWe are very excited to start drilling soon and systematically test the numerous target areas, he said. â€œOur goal remains the same: Identify a multi-million ounce resource through the project.â€