Q2 Metals to buy back Mia NSR royalty
2023-11-02 14:16 ET - News Release
Ms. Alicia Milne reports
Q2 METALS COMPLETES NSR BUYBACK ON THE MIA LITHIUM PROPERTY, JAMES BAY TERRITORY, QUEBEC, CANADA
Q2 Metals Corp. has entered into an agreement with 9219-8845 QC Inc., a private Quebec company doing business as Canadian Mining House (CMH), to buy back the 2-per-cent net smelter production royalty held by CMH on certain claims comprising the 100-per-cent-owned Mia lithium property, located in the Eeyou Istchee James Bay territory of Quebec, subject to customary closing conditions and the approval of the TSX Venture Exchange. The NSR is a portion of a 3% Net Smelter Production Royalty (the "CMH NSR") held by CMH on certain claims comprising the Property.
"The buyback of the NSR is a yet another exciting step forward for Q2 as we progress with our inaugural drill program at Mia," said Alicia Milne, CEO and President of the Company. "We are well funded, and our field team is on-site with two active drill rigs for Phase 1 of our 10,000-metre drill program. We look forward to reporting both sampling and drill results as they are received."
The CMH NSR was issued to CMH on the completion of the acquisition of the Property, to which the Company had the right of first refusal to buy-back up to 1% of the CMH NSR for $1,000,000. The completion of the buy-back of the 2% NSR from CMH will result in the Property having an overall 1% NSR remaining on all claims and an additional 2% net smelter returns royalty in favour of Franco Nevada Corporation on twenty-eight of the Property claims.
In consideration for the NSR buyback, the Company will pay CMH a total consideration of $1,650,000, of which $500,000 cash is payable upon closing and the remaining $1,150,000 payable in a combination of cash and/or common shares of the Company, at the option of the Company, on or before December 31, 2023, with no less than $383,333.33 of the remaining payment being comprised of cash. Common shares, should they be issued in connection with the buyback, shall bear a four-month and one day restrictive hold period.
About Q2 Metals Corp
Q2 Metals Corp. is a Canadian mineral exploration company currently advancing exploration of its 8,668-ha flagship Mia Lithium Property in the Eeyou Istchee James Bay Territory of Quebec, Canada which is host to the Mia Li-1 and Mia Li-2 lithium occurrences. The Company also owns the Stellar Lithium Property with 77 claims totaling 3,972-ha, located approximately six kilometres north of its Mia Lithium Property.
Q2 is also exploring the highly prospective Big Hill and Titan gold projects covering approximately 110 km Superscript 2 in the Talgai Goldfields of the broader Warwick-Texas District of Queensland, Australia, hosting 54 high-grade historical gold mines.
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