Quebec Precious Metals stock jumps 16% on Newmont investment
Quebec Precious Metals (TSXV: CJC) announced Friday that it has closed a C$6.5 million bought deal private placement through an agreement between the company and a syndicate of underwriters led by Laurentian Bank Securities Inc.
The entire financing consisted of the offering of 8.90 million charity flow-through common shares at C$0.40 per share, 7.10 millon Quebec flow-through common shares at C$0.29 per share and 4.17 million common shares (hard shares) at C$0.22 per share.
Shares of QPM opened at C$0.22 and traded at a high of C$0.25 on Friday. The Quebec-based gold explorer has a market capitalization of C$11.25 million.
Net proceeds from the sale of hard shares will be used by the company for general corporate and working capital. Gross proceeds from the charity and Quebec shares will be used for exploration on the company’s flagship Sakami project as well as its other James Bay projects.
Quebec Precious Metals noted that Newmont Goldcorp has exercised its right to increase its ownership to 19.9% on a partially diluted basis by acquiring approximately 4.41 million common shares of the company. This right was granted to Newmont on April 25, 2018 pursuant to an investor rights agreement between the companies. Some insiders of the company, excluding Newmont, also subscribed for a total of 592,718 hard shares of QPM.
QPM was created in June 2018 through a merger between Canada Strategic Metals Inc. and Matamec Explorations Inc. The company currently holds a large land position in the Eeyou Istchee James Bay territory of Quebec, near Newmont’s Éléonore gold mine.