Questcorp Mining Inc. (CSE: QQQ,OTC:QQCMF) (OTCQB: QQCMF) (FSE: D910) (the “Company” or “Questcorp”) announces that it has closed the first tranche of its non-brokered private placement (the “Offering”). In connection with the closing, the Company issued 14,000,334 units (each a “Unit”) at a price of $0.15 per Unit for gross proceeds of $2,100,050. Each Unit consists of one common share of the Company (each a “Share”) and a warrant to purchase one-half of one share (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire an additional common share of the Company at a price of $0.20 until October 24, 2027, subject to an accelerated expiration date if the closing price of the Shares is $0.50 or higher for ten consecutive trading days.
The Company expects to use the proceeds from the Offering to promote ongoing exploration and drilling work at the La Union Gold and Silver Project, upcoming exploration work at North Island Copper Property, and for general working capital purposes.
A portion of the Units issued under the first tranche of the Offering, representing $2,000,000, will be held pursuant to a sharing agreement entered into with an institutional investor, Sorbie Bornholm LP (“Sorbie“) and the company (the”Sharing Agreement“). The Sharing Agreement provides that the economic interest of the Company will be determined in twenty-four monthly settlement tranches, measured by the Benchmark Price (as defined herein). If, at the time of settlement, the Settlement Price (determined monthly based on a volume-weighted average price over twenty trading days prior to the settlement date) (the “Settlement Price“) exceeds the benchmark price of $0.1949 (the “Benchmark price“), the Company will receive more than one hundred percent of the monthly settlement due on a pro-rata basis. There is no cap on the additional proceeds the Company may receive as part of the monthly settlements. If at the time of settlement the Settlement Price is less than the Benchmark Price of $0.1949, the Company will receive less than one hundred percent of the monthly settlement due on a pro-rata basis. In no event case there will be a decrease in the Settlement The price of the Units results in an increase in the number of Units issued to Sorbie.
The Units issued to subscribers in the first tranche of the Offering were issued pursuant to the exemption for financing of listed issuers (the “Exemption for financing of listed issuers“) under Part 5A of National Instrument 45-106 – Prospectus exemptions (“IS45-106“). As a result, they are not subject to statutory hold periods. In connection with the exemption for financing listed issuers, the Company has prepared and filed an offering document in connection with the Offering, which is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at: www.questcorpmining.ca. Potential investors should read this offering document before making any investment decision. No finder’s fees or commissions were paid in connection with the completion of the first tranche of the Offering, but Sorbie received a corporate financing consideration of $130,000, payable through the issuance of 866,667 Units at a price of $0.15 per Unit.
The Company expects to complete a further tranche of the Offering for an additional 9,333,000 Units, bringing the combined gross proceeds of the Offering to $3,500,000. The Company expects that the remaining Units will be offered to subscribers pursuant to the accredited investor exemption (the “Exemption for accredited investors“) under Section 2.3 of NI 45-106. All securities issued pursuant to the Accredited Investor Exemption will be subject to restrictions on resale for a period of four months and one day in accordance with applicable securities laws. In connection with the completion of the remaining tranche of the Offering, the Company may pay finder’s fees to eligible third parties who introduced subscribers to the Offering. tranche of the Offering remains subject to receipt of regulatory approvals.
About Questcorp Mining Inc.
Questcorp Mining Inc. engages in the acquisition and exploration of mineral properties in North America for the purpose of locating and developing economically valuable and base metal properties. The Company has an option to acquire a 100% undivided interest in and to mineral claims totaling 1,168.09 hectares, comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also has an option to acquire a 100% undivided interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project in Sonora, Mexico, subject to a royalty obligation.
This press release contains certain “forward-looking statements” under applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding the intended use of proceeds from the Offering. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: Riverside’s ability to retain geophysical contractors to conduct exploratory surveys and follow up on detailed investigations to confirm and improve the intended drilling objectives, as contemplated or at all, general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or lack of board or regulatory approval. There can be no assurance that geophysical surveys will be completed as planned or conducted at all and that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/271978
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