Q2 Metals Secures C$26 Million in Flow-Through Share Placement
Q2 Metals Announces Successful Private Placement Completion
Q2 Metals Corp. (TSX.V: QTWO | OTCQB: QUEXF | FSE: 458), a dedicated Canadian mineral exploration company, has successfully completed an upsized private placement. The company has issued 26 million common shares classified as ‘flow-through shares’ (FT Shares) at a price of C$1.00 each, thereby generating significant gross proceeds of C$26 million. This funding effort showcases Q2's commitment to developing its mineral projects, particularly those focused on lithium exploration.
Details of the Offering
The private placement was conducted under a best-efforts basis according to an agency agreement with Canaccord Genuity Corp., which served as the sole agent and bookrunner. The offering included 25 million LIFE FT Shares and 1 million Non-LIFE FT Shares, facilitating a broad reach in primary funding sources.
A notable aspect of the agreement includes the full exercise of the Agent's option, contributing an additional C$5 million to the total gross proceeds. These funds are earmarked for essential exploration activities that align with ongoing strategic goals.
Utilization of Proceeds
The funds raised from this private placement will be utilized to undertake Canadian exploration expenses, which qualify as flow-through critical mineral mining expenditures under the Income Tax Act. Q2 Metals is committed to fully utilizing these proceeds by December 31, 2026, to bolster its exploration activities aimed at enhancing project viability and expanding its mineral inventory.
Furthermore, the company plans to renounce all qualifying expenditures in favor of the FT shares' subscribers by December 31, 2025. This strategic maneuver is expected to strengthen the company’s financial structure and appeal to investors seeking to benefit from tax incentives related to flow-through share investments.
Broker Compensation and Terms
For the Agent's services in this offering, Q2 Metals has compensated with a cash commission totaling C$1.3 million and allotted 1.3 million non-transferable broker warrants. Each warrant allows the holder to purchase one common share at a price of C$0.90 for three years following the closing of this offering. Such arrangements are common in the market to ensure supportive partnerships with financial agents.
Overview of Q2 Metals Corp.
Q2 Metals is strategically focused on mineral exploration in Canada, with its primary interest lying in the Cisco Lithium Project situated in the James Bay region of Quebec. This project encompasses 801 claims covering roughly 41,253 hectares, and it is conveniently located near vital transportation routes.
The Cisco Lithium Project holds promising potential with its initial exploration target indicating approximately 215 to 329 million tonnes of lithium mineralization at grades ranging from 1.0% to 1.38% Li2O, based on early drilling results. Such encouraging figures underline the project's significance in the context of the growing demand for lithium, driven primarily by the burgeoning electric vehicle market.
Current Exploration Efforts
Drilling activities are ongoing, with mineralization showing expansion potential both at depth and along strike. The 2025 Summer Program aims to continue these exploration efforts, with assay results expected throughout the third quarter of 2025. Q2 Metals aims to work diligently toward establishing a maiden resource estimate that could significantly enhance its market positioning within the mining sector.
Contact Information for Inquiries
For more information regarding this placement and other company inquiries, please contact Q2 Metals directly. The following contacts are available:
Alicia Milne
President & CEO
Alicia@Q2metals.com
Jason McBride
Investor Relations Manager
Jason@Q2metals.com
Chris Ackerman
Corporate Development
Chris@Q2metals.com
Telephone: 1 (800) 482-7560
Email: info@Q2metals.com
Frequently Asked Questions
1. What was the amount raised from the private placement?
Q2 Metals successfully raised C$26 million from the private placement of flow-through shares.
2. What will the proceeds of the offering be used for?
The proceeds will be utilized for Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.
3. Who was the agent for this private placement?
Canaccord Genuity Corp. acted as the sole agent and bookrunner for this offering.
4. What is the Cisco Lithium Project?
The Cisco Lithium Project is a mineral exploration site in Quebec, focusing on lithium extraction, with promising mineralization potential.
5. How can investors contact Q2 Metals for more information?
Investors can reach out to Q2 Metals through their website or via email at info@Q2metals.com.
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