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Toronto, ON / TheNewswire / April 17, 2015 - QMX GOLD CORPORATION (TSXV:QMX)("QMX Gold" or the "Company") has entered into a definitive agreement to sell its Snow Lake Project, located in Snow Lake, Manitoba, to a wholly-owned subsidiary of Hudbay Minerals Inc.("Hudbay").
Under the terms of the agreement, Hudbay will acquire 100% of QMX Gold's interest in the Snow Lake Project for US$12.3 million in cash on closing and a contingent payment of US$5 million, payable if the price of gold is equal to or greater than US$1,400/oz on the third anniversary of the closing date. The Snow Lake Project consists of the Snow Lake mine and an associated processing plant, which are currently on care and maintenance, and C$1.867 million in cash, which supports the closure obligations associated with the property.
The transaction is expected to close on or about April 30, 2015 and is subject to regulatory and third party approvals and customary conditions precedent. QMX Gold will use the proceeds of the sale, including its right to receive the contingent payment, to pay down the credit facility held by Third Eye Capital Corporation ("TEC"). The Company is currently negotiating with TEC to come to a mutually satisfactory resolution with respect to the remaining debt outstanding.
QMX Gold will continue to operate the Aurbel Mill at its Val d'Or property to fulfill the custom milling agreement to process ore from the Elder Mine for Abcourt Mines Inc. ("Abcourt"). QMX Gold has recently extended the term of the custom milling agreement to end June 2015 with the option for Abcourt to extend it by an additional month in order to process all of the ore provided by Abcourt. The Company also continues to look for other strategic acquisitions in the Val d'Or region to ensure the continuation of operations past the custom milling agreement.
Brett New, President and CEO of QMX Gold, commented: "I'm very pleased to announce that Hudbay, a well-established Canadian mineral producer, will be acquiring the Snow Lake Project. We remain confident in the historic Snow Lake mine, but this transaction will now permit QMX Gold to move forward and focus on its assets in Quebec."
About QMX
QMX Gold Corporation is a Canadian mining company traded on the TSX-V under the symbol "QMX". The Company is focusing on mine development and exploration in Quebec and is actively looking for other mining projects for acquisition in the Val d'Or area.
Qualified Person
Technical information included in this release has been supervised, compiled, reviewed and approved by David Rigg, P.Geo., the Chairman of the Company and a Qualified Person as defined under NI 43-101.
Contact Information:
Brett New, Louis Baribeau, Rob Hopkins,
President and CEO Public Relations Investor Relations
Tel: (416) 861-5904 Tel: (514) 667-2304 Tel: (416) 861-5899
Toll free: +1 877-717-3027
Email: info@qmxgold.ca
Website: www.qmxgold.ca
Cautionary Note Regarding Forward-Looking Information and Mineral Resources:
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 (express or implied) relating to mining, milling and future development of the assets of QMX Gold, the potential sale of the Snow Lake Project, and the future financial or operating performance of QMX Gold, its properties and/or its projects. 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. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
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.
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