Questcorp Signs Letter of Intent to Acquire Interest in La Union Project, Sonora, Mexico

Questcorp Signs Letter of Intent to Acquire Interest in La Union Project, Sonora, Mexico

Questcorp Mining Inc. (CSE: QQQ) (FSE: D910) (the "Company" or "Questcorp") is pleased to announce that it has entered into a letter of intent (the "Letter of Intent"), dated effective September 4, 2024, with Riverside Resources Inc. (TSXV: RRI) ("Riverside"), an arms-length party, whereby the Company will be granted an option (the "Transaction") to acquire a one-hundred percent (100%) interest in the La Union project (the "Project") located in Sonora, Mexico.

In accordance with the terms of the Transaction, the Company can acquire a one-hundred percent (100%) interest in the Project in consideration for completion of a series of cash payments totaling $100,000, the issuance of 19.9% of the outstanding common shares of the Company, and the incurrence of no less than $5,500,000 of exploration expenditures on the Project, as follows:

DeadlineCash PaymentShare IssuanceExploration Expenditures
Entering into Letter of Intent(Paid) $12,500NilN/A
Closing of the Transaction$12,500*9.9%N/A
First Anniversary of ClosingNil*14.9%$1,000,000
Second Anniversary of Closing$25,000*19.9%$1,250,000
Third Anniversary of Closing$25,000*19.9%$1,500,000
Fourth Anniversary of Closing$25,000*19.9%$1,750,000
Total$100,000**19.9%$5,500,000

 

*Expressed as a cumulative total percentage of the undiluted issued and outstanding common shares of the Company as of the applicable payment date, and assuming Riverside has not previously disposed of any common shares.
**Assuming the required share issuance was completed as of the date of this release, and not including any shares issued in connection with the Concurrent Financing or any further share issuances, the Company would be required to issue approximately 3,730,000 common shares.

"La Union represents an excellent opportunity to acquire a significant asset as we continue work to build shareholder value in the Company," commented Questcorp. President & CEO, Saf Dhillon. "We are extremely pleased to team up with the expertise of John-Mark Staude and the Riverside technical team to unlock the full potential of the La Union project," he continued.

La Union project has high grades of gold (highlight grab samples of 83.2 and 59.4 g/t) and of zinc (highlight grab samples of 30% and 21.4%) with previous underground near surface mine operations. Riverside has identified over 8 targets, with the 3 highest priority targets hosting past mining activity. These targets demonstrate intriguing potential for large gold discoveries potentially above an even larger porphyry Cu district potential. The objectives of the first phase of further exploration will be to expand the mineralization footprints at these targets.

Questcorp cautions investors grab samples are selective by nature and not necessarily indicative of similar mineralization on the property.

President & CEO of Riverside, John-Mark Staude, stated, "We are excited to work with Questcorp to carry out further exploration work on La Union's multiple targets we have worked up through extensive field activity. Riverside has consolidated the mineral tenure into an aggregated district play and worked with surface owners to obtain access and set up the project for immediate advancement."

Riverside will remain the program operator for the Project during the term of the option using its local team based in Hermosillo, Sonora. Following exercise of the option, Riverside will retain a two-and-one-half percent (2.5%) net smelter returns royalty on commercial production from the Project.

No finders' fees or commissions are payable in connection with the Transaction, although finders' fees may be paid in connection with the Concurrent Financing. No changes to the board or management of the Company are contemplated in connection with the Transaction. In connection with completion of the Transaction, the Company intends to undertake a non-brokered private placement (the "Concurrent Financing"). Further information regarding the Concurrent Financing and the applicable terms will be provided as soon as available.

Completion of the Transaction remains subject to a number of conditions, including the completion of satisfactory due diligence, the negotiation and finalization of definitive documentation, completion of the Concurrent Financing for gross proceeds of no less than $1,500,000, receipt of any required regulatory, shareholder and third-party consents, approval of the Canadian Securities Exchange, and the satisfaction of other customary closing conditions.

Readers are cautioned that the Letter of Intent does not bind the Company to complete the Transaction and will automatically terminate after forty-five days in the event a definitive agreement cannot be reached. The Transaction cannot close until the required approvals are obtained and the foregoing conditions satisfied. There can be no assurance that the Transaction will be completed as proposed or at all.

The technical content of this news release has been reviewed and approved by R. Tim Henneberry, P.Geo. (BC), a Director of Questcorp and a Qualified Person under National Instrument 43-101.

About Questcorp Mining Inc.

Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties. The Company holds an option to acquire an undivided 100% 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's secondary objective is to locate and develop economic precious and base metals properties of merit.

Contact Information

Questcorp Mining Corp.
Saf Dhillon, President & CEO
Email: saf@questcorpmining.ca
Telephone: (604) 484-3031

The Canadian Securities Exchange has in any way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the proposed Transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the 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: general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that the Transaction will proceed on the terms contemplated above or 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/222321

News Provided by Newsfile via QuoteMedia

QQQ:CC
The Conversation (0)
Questcorp Mining Announces Closing of Private Placement Financing

Questcorp Mining Announces Closing of Private Placement Financing

Questcorp Mining Inc. (CSE: QQQ) (the "Company" or "Questcorp") announces that it has closed its non-brokered private placement offering (the "Offering") of 4,999,999 units (each, a "Unit") at a price of $0.07 per Unit for gross proceeds of $350,000. Each Unit consists of one common share of the Company and one common share purchase warrant entitling the holder to acquire a further common share of the Company at a price of $0.10 per common share until June 28, 2026 (each, a "Warrant").

An insider of the Company participated in the Offering for 183,570 Units in the aggregate. Such participation represents a related party transaction subject to Multilateral Instrument 61-101 - Protection of Minority Holders in Special Transaction ("MI 61-101"). The transaction is however exempt from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Offering did not exceed 25% of the fair market value of the Company's market capitalization.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Silver47 Drills 2.9m of 1,078.8 g/t Silver Equivalent  at the West Tundra Flats Zone at Its Red Mountain Project, Alaska

Silver47 Drills 2.9m of 1,078.8 g/t Silver Equivalent at the West Tundra Flats Zone at Its Red Mountain Project, Alaska

Silver47 Exploration Corp. (TSXV: AGA) ("Silver47" or the "Company), is pleased to announce results from two diamond drill core holes at the West Tundra Flats resource area for a combined 331m at its wholly owned flagship Red Mountain Project in Alaska, USA. Both drill holes cut high-grade silver-zinc-lead-gold-copper zones within a wider sulfide mineralization horizon.

Highlights from 2024 West Tundra Flats Drill Holes:

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Red Metal Resources Engages German Investor Awareness and Digital Marketing Consultants

Red Metal Resources Engages German Investor Awareness and Digital Marketing Consultants

Red Metal Resources Ltd. (CSE: RMES) (OTC Pink: RMESF) (FSE: I660) ("Red Metal" or the "Company") The Company has engaged Investment-Zirkel-München ("IZM") that offers several services for German language investor awareness including news dissemination, conference calls, real-time investor forums and an active investors network throughout Europe. IZM has a select investor following that participate in both financings and open market buying. The IZM contract is for a two-year term at a cost of CAD$25,000.

IZM has a business address at Lena-Chris-Str 9, Nuebiberg, Germany. The services to be provided will be overseen by Mathias Voigt, President of the company, who can be contacted at mv@i-z-m.info. Mr. Voigt owns 150,000 shares of the Company.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
World Copper Initiates Strategic Review Process and Engages Advisor

World Copper Initiates Strategic Review Process and Engages Advisor

World Copper Ltd. (TSXV: WCU) (OTCQB: WCUFF) (FSE: 7LY0) ("World Copper " or the "Company") announces that the Company has initiated a strategic review process and has engaged Origin Merchant Partners (the "Advisor") to assist it in its review. The Advisor will work with World Copper's management and Board to evaluate a range of strategic alternatives that may be available to the Company to grow and maximize value for all shareholders (the "Engagement"). There can be no assurance that this process will result in any specific strategic plan or financial transaction and no timetable has been set for its completion. The Company does not plan to provide updates on the status of the review unless there are material developments to report.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Heritage Mining Further Expands Land Position and Provides Exploration Update

Heritage Mining Further Expands Land Position and Provides Exploration Update

(TheNewswire)

Heritage Mining Ltd.

VANCOUVER, BC TheNewswire - November 19, 2024 Heritage Mining Ltd. (CSE: HML FRA:Y66) (" Heritage " or the " Company ") is pleased to announce the claim package expansion at its flagship Drayton Black Lake (" DBL ")  based on experts recommendations Brett Davis and Dr. Gregg Morrison in addition to an update on the ongoing 2024 exploration program over the Ontario Project Portfolio. The Company believes the progress achieved to date represents important milestones for systematic exploration in one of the last underdevelopment greenstone belts in Northwestern Ontario.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Quetzal Copper Announces Brokered Private Placement Offering to Raise $3.0 Million

Quetzal Copper Announces Brokered Private Placement Offering to Raise $3.0 Million

Quetzal Copper Corp. (TSXV: Q) ("Quetzal" or the "Company") a North American focused copper exploration company is pleased to announce that it has entered into an agreement with Independent Trading Group ("ITG") to act as lead agent and sole bookrunner in connection with a "best efforts" private placement (the "Offering") for aggregate gross proceeds of up to $3,000,000 from the sale of the following:

  • up to 6,666,666 units of the Company (the "Units") at a price of $0.15 per Unit for gross proceeds of up to $1,000,000 from the sale of Units; and
  • up to 10,526,315 common shares of the Company (the "FT Shares", and together with the Units, the "Offered Securities") at a price of $0.19 per FT Share for gross proceeds of up to $2,000,000 from the sale of FT Shares. Each FT Share will be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada).

Each Unit issued under the Offering shall consist of one common share in the capital of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of $0.25 per Common Share for a period of 24 months from the Closing Date (as defined below).

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Bold Ventures Stakes Claims Near Joutel, Québec and Completes Second Phase of Fall Exploration at the Company's Properties in Northwestern Ontario

Bold Ventures Stakes Claims Near Joutel, Québec and Completes Second Phase of Fall Exploration at the Company's Properties in Northwestern Ontario

Bold Ventures Inc. (TSXV: BOL) (the "Company" or "Bold") announces that it has staked 26 claims near Joutel, Québec (with 4 claims pending), approximately 140 km northwest of the city of Val d'Or, Québec. The claims are situated in the vicinity of Bold's former Joutel property, over which Bold flew an airborne VTEM survey in 2012. The new claims cover geophysical anomalies from the 2012 survey. Historical diamond drilling in this area has identified anomalous nickel, silver, copper, zinc and gold associated with geophysical anomalies. Click here for more details about the property.

Additionally, senior management of Bold and prospectors from Emerald Geological Services ("EGS") have completed a second phase of fall fieldwork in the Atikokan, Ontario area, including prospecting, soil sampling, and lake sediment sampling. Work was carried out on the Wilcorp, Burchell, and Traxxin properties during the first half of November. A week-long first phase of fieldwork in September of this year resulted in assays up to 16.3 g/t Au at Bold's Wilcorp property (Oct. 31st news release). The purpose of the recent program was to define 2025 trenching and drilling targets in historical areas of interest, based on rock assays, soil geochemistry, and geological data.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×