"I was of the assumption that since the authorized

"I was of the assumption that since the authorized capital stock of the Company consists of 750M shares of Common Stock, you couldn't issue options or warrants that would exceed what was authorized."

You were correct, that is how it is suppose to work. A company is suppose to determine the number shares that it needs to operate with (Authorized Shares) by keeping track of its Outstanding Shares; reserving shares to cover options, warrants and convertible notes already issued/awarded; and adding a cushion to allow them, if needed, to continue to award more options, issue more Notes and warrants for financing, and comply with contractual requirements like the 20% cushion in the Pasaca agreement.

This puts a limit on how much shareholders can be diluted and requires the company to justify to shareholders if the company sees the need to increase the shares authorized.

"So is the proxy needed to raise the amount of common stock available just simply so it could be issued to pasaca?"

The A/S needs to be increased for three reasons.

First, the A/S needs to increase from 750M to about 1 billion shares to cover all of the existing options, warrants and convertible notes.

Second, it need to increase to about 2 billion shares so QMC can issue the new shares that Pasca will need to reach the 51% of the fully diluted shares.

Third, it needs to increase to at least 2.5 billion shares to give QMC the needed cushion, including the Pasaca 20%.