/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
(All figures in Canadian dollars unless
otherwise stated)
TORONTO, Feb. 25, 2020 /CNW/ - QMX Gold
Corporation ("QMX" or the "Company")
(TSX:V:QMX) is pleased to announce that it is has entered into an
agreement with a syndicate of underwriters co-led by Canaccord
Genuity Corp. and Mackie Research Capital Corporation (together,
the "Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a "bought deal" private placement basis,
33,333,000 flow-through units (the "Flow-Through Units") of
the Company, at a price per Flow-Through Unit of $0.18 (the "Issue Price"), for approximate gross
proceeds of C$6,000,000 (the
"Offering").
Each Flow-Through Unit shall be comprised of one common share of
the Company which will qualify as a "flow-through share" (within
the meaning of subsection 66(15) of the Income Tax Act
(Canada) and section 359.1 of the
Taxation Act (Québec) (the "FT Common Shares")
and one-half of one common share purchase warrant to be issued on a
non-flow-through basis (each whole such warrant, a
"Warrant"). Each whole Warrant shall entitle the holder
thereof to acquire one common share of QMX at a price of
$0.18 for a period of 24 months
following the closing of the Offering.
In addition, the Underwriters have been granted an option to
sell up to an additional 4,999,950 Flow-Through Units at the
Issue Price for additional gross proceeds of up to C$899,991.
The Company is pleased to announce that the Underwriters have
advised the Company that Mr. Eric
Sprott and O3 Mining Inc, are expected to make strategic
investments in connection with the Offering.
The gross proceeds received by the Company from the sale of the
FT Common Shares will be used to incur Canadian Exploration
Expenses ("CEE") that are "flow-through mining expenditures"
(as such term is defined in the Income Tax Act (Canada)) on the Company's properties in
Québec, which will be renounced to the subscribers with an
effective date no later than December 31,
2020, in the aggregate amount of not less than the total
amount of the gross proceeds raised from the issuance of FT Common
Shares.
The Company intends to use the net proceeds of the Offering to
fund the Company's exploration activities on its Val d'Or property. The securities issued under
this Offering will be subject to a statutory hold period.
The closing of the Offering is expected to occur on or about
March 18, 2020 and is subject to the
receipt of regulatory approvals, including the approval of the TSX
Venture Exchange.
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.
About QMX Gold Corporation
QMX Gold Corporation is a Canadian based resource company traded
on the TSX Venture Exchange 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.
Cautionary Note Regarding Forward-Looking
Information:
This press release contains or may be deemed to contain
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements
regarding the intended use of proceeds, closing
conditions and timing and other matters relating to the Offering,
future plans, operations and activities, projected mineralization,
timing of assay results, and the ability of the Company to continue
as a going concern. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company, its properties and/or its projects to be materially
different from those expressed or implied by such forward-looking
information, including but not limited to those risks described in
the disclosure documents of the Company filed under the Company's
profile on SEDAR. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE QMX Gold Corporation
