QMX Gold Closes Previously Announced Non-Brokered Private Placement at $3.96 Million
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(All figures in Canadian dollars unless otherwise stated)
TORONTO, July 16, 2019 (GLOBE NEWSWIRE) -- 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 $3.96 million (the “Offering”). In connection with the Offering, the Company issued 39,600,000 common shares of the Company (each, a “FT Share”) that qualify as a “flow through share” for purposes of the Income Tax Act (Canada).
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 Qubec. In connection with the Offering, QMX has engaged Canaccord Genuity Corp. to act as its financial advisor for the Offering and paid an advisory fee of $40,000 in cash.
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 726.4.17.1 of the Quebec Taxation Act, which will be renounced to the subscribers with an effective date no later than December 31, 2019 to the initial purchasers of the FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.
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.
Stock Option Grant
The Company has granted a total of 6.45 million stock options to certain officers, directors and consultants of the Company pursuant to the Company’s stock option plan. The stock options vest immediately and may be exercised at a price of $0.10 per option for a period of five years from the date of grant. This grant of options is subject to the approval of the TSX Venture Exchange.