QMX Gold to Sell Rouyn-Noranda, Quebec Property to Druk Capital

QMX Gold Corp. (TSX:QMX,OTCQX:QMXMF) announced that it has entered a purchase and sale agreement with Druk Capital Partners Inc. (TSXV:DRU.P) to sell Druk its Quebec base metals property for the price of $5 million and 7 million Druk shares priced at $0.25 a share.

As quoted in the press release:

The project in Rouyn-Noranda, which covers approximately 728 square kilometers, was originally added to the Company’s portfolio of properties in 2004 when the Company entered into a 50/50 joint venture with Noranda Inc. QMX acquired rights to the Property in April 2011 when it completed an agreement with Xstrata Canada Corp. The mining camp had historically produced gold and other base metals.

QMX believes the benefits of the Transaction are as follows:

• Increases the cash position of QMX to move the Snow Lake Project forward.
• Brings the exploration potential of the mineral-rich Rouyn-Noranda properties to the near- term as the exploration efforts by Druk ramp-up as the Property will become the qualifying property of Druk.
• Provides QMX the opportunity to participate in the growth of an independent junior exploration company by retaining approximately 16% ownership of Druk upon closing of the Transaction and completion of Druk’s qualifying transaction.

Click here to read the full QMX Gold Corp. (TSX:QMX,OTCQX:QMXMF) press release.