QMX Gold upsizes and closes previously announced non-brokered private placement at $1.8 million
QMX Gold Corporation (“QMX” or the “Company”) (TSX.V: QMX) is pleased to announce it has closed its previously announced non-brokered private placement for gross proceeds of approximately $1.8 million (the “Offering”). In connection with the Offering, the Company issued 19,872,000 units (each, a “Unit”) at a price of $0.09 per Unit. Each Unit consists of one common share of the Company that qualify as a “flow through share” for purposes of the Income Tax Act (Canada) (each, a “FT Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”), entitling the holder to acquire one additional regular common share at an exercise price of $0.11 for a period of 24 months from issuance (each, a “Common Share”).
The Company intends to use the net proceeds from the Offering to fund the Company’s current exploration activities on its Val-d’Or Mining Camp property located in Québec.
In connection with the Offering, QMX has engaged Canaccord Genuity Corp. to act as its financial advisor for the Offering and paid aggregate finder’s fees of $112,322.00 in cash and 1,248,021 finder’s warrants (“Finder’s Warrants”) to certain finders. Each Finder Warrant will entitle the holder thereof to purchase one Share at a price of $0.11 for a period of 24 months from the date of the closing of the Offering.
All of the expenditures funded with the gross proceeds of the Offering shall qualify for "Canadian Exploration Expenses" (within the meaning of the Income Tax Act (Canada)) and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as defined in subsection 127(9) of the Income Tax Act (Canada). In addition, the FT Shares will also qualify for the two 10% enhancements under section 726.4.9 and section 7220.127.116.11 of the Quebec Taxation Act, which will be renounced to the subscribers with an effective date no later than December 31, 2018 to the initial purchasers of the Units in an aggregate amount not less than the gross proceeds raised from the issue of the Units.
All securities issued under this Offering are subject to a statutory hold period ending four months and one day from the closing date of the Offering.
The securities offered under the Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
QMX Gold is pleased to welcome Fred Leigh back to the board of directors of the Company as Interim Chairman. Mr. Leigh was the Chairman of QMX from mid-2016 to late 2017. Mr. Leigh will replace Michael Timmins who has elected to step down from his role as Executive Chairman, effective immediately, in order to pursue other opportunities. We would like to thank Mr. Timmins for his valuable contribution to QMX on multiple corporate development initiatives including the recently announced custom milling agreement with Gowest Gold Ltd. We wish him all the best in his future endeavors.
About QMX Gold Corporation
QMX Gold Corporation is a Canadian based resource company traded on the TSX-V under the symbol “QMX”. The Company is systematically exploring its extensive property position in the Val d’Or mining camp in the Abitibi District of Quebec. QMX is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond plug and in and around the Bevcon Intrusive. In addition to its extensive land package QMX owns the strategically located Aurbel gold mill and tailings facility, which is expected to commence custom milling in 2019.