Eldorado takes 20% stake in QMX Gold
Canadian Mining Journal Staff | December 19, 2019 | 10:33 am Canada Gold Eldorado begins commercial production at its first Canadian mine
Mill at Lamaque underground gold mine in Quebec. QMX Gold announced a C$4 million share purchase agreement with Eldorado Gold which will give the producer a 19.99% stake in the company.
“QMX continues to return excellent results from its various projects across its extensive Val d’Or property, demonstrating significant upside potential. Eldorado’s investment will allow us to continue to progress our projects, creating shareholder value and validates QMX’s work completed to date,” Brad Humphrey, the company’s president and CEO said in the release.
The 68-million share non-brokered private placement will be done at C$0.06 per share, a 9% and 11% premium to the close and 20-day weighted average price of QMX shares respectively for proceeds of C$4 million.
Eldorado holds the Lamaque project in Quebec which started commercial production in April and is expected to produce 100,000 oz. to 110,000 oz. this year. It acquired the project in May 2017 for C$590 million from Integra Gold.
QMX holds 200 sq. km of holdings in Val d’Or with an indicated resource of 4.8 million tonnes at 1.69 g/t gold for a total of 258,700 oz. with an additional 2.4 million tonnes at 1.87 g/t gold inferred for a total of 145,100 oz. at the Bonnefond deposit. The company also holds the Aurbel mill in its portfolio.
(This article first appeared in the Canadian Mining Journal)