Questcorp Signs Option Agreement to Acquire 100% Interest in La Union Project, Sonora, Mexico and Completes Technical Report for La Union Project

Questcorp Signs Option Agreement to Acquire 100% Interest in La Union Project, Sonora, Mexico and Completes Technical Report for La Union Project

Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") is pleased to announce that further to its news release dated September 6, 2024, it has entered into a definitive option agreement (the "Option Agreement") for the 2,520.2 hectare La Union carbonate replacement project located in Sonora, Mexico (the "Project" or "La Union") with Riverside Resources Inc. ("Riverside") and its wholly-owned subsidiary, RRM Exploracion, S.A.P.I. DE C.V. (the "Vendor") dated May 5, 2025 (the "Transaction"). The Company has also completed and filed on SEDAR+ the La Union Technical Report (the "Report") in support of the Transaction (as defined below).

"Having entered into the Option Agreement and completed this 43-101 Technical Report is an important accomplishment towards our goal of advancing the Project and working our way to earning up to 100% of this drill-ready property in a highly active region with multiple known deposits, major players and mines in production!" commented Questcorp President & CEO, Saf Dhillon. "John-Mark Staude and the Riverside technical team have been doing an exceptional job in consolidating the group of claims that now make up the Project and we look forward to working with them in completing the conditions for 100% ownership of the Project," he continued.

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."

The La Union Project

La Union is a carbonate replacement deposit ("CRD") project hosted by Neoproterozoic sedimentary rocks (limestones, dolomites, and siliciclastic sediments) overlying crystalline Paleoproterozoic rocks of the Caborca Terrane. The structural setting features high-angle normal faults and low-to-medium-angle thrust faults that sometimes served as mineralization conduits. Mineralization occurs as polymetallic veins, replacement zones (mantos, chimneys), and shear zones with high-grade metal content, as shown in highlight grades of 59.4 grams per metric tonne (g/t) gold, 833 g/t silver, 11% zinc, 5.5% lead, 2.2% copper, along with significant hematite and manganese oxides, consistent with a CRD model (see the Report available under Questcorp's SEDAR+ profile). These targets also demonstrate intriguing potential for large gold discoveries potentially above an even larger porphyry Cu district potential as the Company's target concept at this time.

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

Julian Manco, P.Geo. (BC), the author of the Report (the "QP"), concluded exploration work carried out by Riverside on the Project identified five zones with gold and base metals mineralization at Union, La Union Norte, El Cobre, El Creston, and La Famosa. He noted these zones define three main target areas: Union, North Famosa, and Famosa, where replacement and manto and chimney structures in the limestones exhibit polymetallic chemical signatures consistent with carbonate replacement deposits. Further he noted, although gold grades are usually low in CRD systems, the high grades of gold observed in the Project area may be interpreted in part as remobilization or interaction with gold-bearing structures that are common in this area and in general are the main target for the Orogenic Gold systems exploited in the Caborca region.

Mr. Manco concluded these target zones have the potential for the discovery of bulk mineable gold and polymetallic deposits and further exploration by drilling is warranted to test their economic potential. In addition, further reconnaissance exploration is required to carry out reconnaissance exploration and follow up on other copper, and gold anomalies that occur between these two targets. He also noted the possibility La Union mineralization may be related to Laramide-age magmatism suggesting a potential for a porphyry copper deposit potential.

The QP recommends a phase I exploration program of detailed structural mapping and sampling, ground magnetics, 3D inversion modeling of magnetic data, geochemical sampling and UV lamp surveys, followed by a phase II drilling program.

The Option Agreement

In accordance with the terms of the Option Agreement, the Company may acquire a one-hundred percent (100%) interest in the Project by completing a series of cash payments totaling $100,000 CAD, making staged issuances of common shares of the Company totaling 19.9%, and incurring $5,500,000 CAD of exploration expenditures on the Project as outlined immediately below (the "Option Conditions"):

DeadlineCash Payment
(CAD)
Share
Issuance
Exploration
Expenditures
(CAD)
Within two (2) business days of the date of the Option Agreement$25,000N/AN/A
On the Effective Date(1)N/A9.9%(2)N/A
On or before the first anniversary of the Effective DateN/A14.9%(2)(3)$1,000,000
On or before the second anniversary of the Effective Date$25,00019.9%(2)(3)$1,250,000
On or before the third anniversary of the Effective Date$25,00019.9%(2)(3)$1,500,000
On or before the fourth anniversary of the Effective Date$25,00019.9%(2)(3)$1,750,000
Total$100,00019.9%(2)(3)$5,500,000

 

Notes:

  1. "Effective Date" means the date on which the Company delivers to the Vendor a copy of the written approval of the Canadian Securities Exchange in respect of the transactions contemplated by the Option Agreement.
  2. Issuable within the fifth business day after the applicable date.
  3. 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.

During the term of the Option Agreement, the Vendor will remain the program operator for the Project using its local team based in Hermosillo, Sonora. Following exercise of the option under the Option Agreement, the Company will grant the Vendor 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. No changes to the board or management of the Company are contemplated in connection with the Transaction.

Readers are cautioned that the Option Agreement does not bind the Company to complete the Transaction. Completion of the Transaction remains subject to a number of conditions, including receipt of any required regulatory, shareholder and third-party consents, approval of the Canadian Securities Exchange, satisfaction of the Option Conditions, and the satisfaction of other customary closing conditions. The Transaction cannot close until the required approvals are obtained and the foregoing conditions, including the Option Conditions, are satisfied. There can be no assurance that the Transaction will be completed as proposed or at all. For further information concerning the Transaction, including the Option Agreement, readers are encouraged to review the Report and the Option Agreement which have been filed under the profile for the Company on SEDAR+ (www.sedarplus.ca).

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 not 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 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: the ability of the Company to complete the Transaction as contemplated or at all, the ability of the Company to satisfy the Option Conditions as contemplated or at all, 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 be completed 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/250901

News Provided by Newsfile via QuoteMedia

QQQ:CC
Questcorp Mining

Questcorp Mining Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Questcorp Mining (CSE:QQQ)

Questcorp Mining

Keep reading...Show less

Gold and copper exploration in historic, past-producing regions in Canada and Mexico

Questcorp Mining Forms Advisory Board and Appoints Paul Larkin as Inaugural Advisor

Questcorp Mining Forms Advisory Board and Appoints Paul Larkin as Inaugural Advisor

Questcorp Mining Inc. (CSE: QQQ) (OTCBB: QQCMF) (FSE: D910) ("Questcorp" or the "Company"), an emerging copper and gold exploration company, is pleased to announce the formation of an Advisory Board to support the Company's continued growth and development. The Company is also pleased to announce the appointment of Mr. Paul Larkin, a highly respected industry veteran in the public company sector, as its inaugural advisor.

Saf Dhillon, President and CEO of Questcorp, stated:
"We are thrilled to welcome an accomplished mining executive like Paul Larkin to the Questcorp team. His decision to join as an advisor is a strong endorsement of everything we've built to date. With Paul's experience and guidance, we aim to enhance shareholder value through the advancement of our highly prospective exploration projects in both Canada and Mexico."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Questcorp Mining Issues Shares to Riverside Resources Inc. and Commences Planning at La Union Gold Project

Questcorp Mining Issues Shares to Riverside Resources Inc. and Commences Planning at La Union Gold Project

Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") is pleased to announce that, further to its news release dated May 6, 2025, the Company has issued 6,285,722 common shares in the capital of the Company (the "Common Shares"), representing 9.9% of the issued and outstanding Common Shares as of May 20, 2025, to Riverside Resources Inc. ("Riverside") and completed the required payment of $25,000 CAD to Riverside, all pursuant to the terms and conditions of the option agreement among the Company, Riverside and its wholly-owned subsidiary, RRM Exploracion, S.A.P.I. De C.V, dated May 5, 2025, in respect of the 2,520.2 hectare La Union carbonate replacement project located in Sonora, Mexico (the "La Union Project").

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Questcorp Mining Plans IP Survey at North Island Copper

Questcorp Mining Plans IP Survey at North Island Copper

Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") is pleased to announce permitting is under way for a 10 to 15 line km induced polarization (IP) survey at the Company's 1,168 hectare North Island Copper project near Port Hardy on Vancouver Island, British Columbia.

While Questcorp's North Island Copper project hosts 8 targets across the property, the main target is the historic Marisa Zone, a porphyry copper target last explored in the 1990's. Surface sampling and a preliminary 12.3-line km Induced Polarization (IP) survey identified an interesting chargeability anomaly that was followed up by a five hole, 376.43 diamond drilling program. Two of the five holes hit interesting copper values including down hole intervals of 0.078% copper over 56.39 metres in DDH92-01 and 0.041% copper over 70.71 metres in DDH92-03 in an altered quartz diorite. Copper grades were increasing with depth in DDH92-03. The Company plans to follow up these historic results.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Questcorp Mining Announces Closing of Oversubscribed Private Placement Financing

Questcorp Mining Announces Closing of Oversubscribed Private Placement Financing

Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") is pleased to announce that it has closed its non-brokered private offering (the "Offering") of 45,832,539 units (each, a "Unit") at a price of $0.06 per Unit for gross proceeds of $2,749,952. 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 until March 19, 2027 (each, a "Warrant").

Certain insiders of the Company participated in the Offering for an aggregate of 1,683,750 Units. 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 the fair market value of the Units acquired by the insiders in the Offering did not exceed 25% of the Company's market capitalization.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Questcorp Mining Announces Private Placement

Questcorp Mining Announces Private Placement

Questcorp Mining Inc. (CSE: QQQ) (the "Company" or "Questcorp") is pleased to announce that it intends to complete a non-brokered private placement offering (the "Offering") of up to 33,000,000 units (each, a "Unit") at a price of $0.06 per Unit for gross proceeds of $1,980,000. Each Unit will consist 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 share for a period of two years.

The net proceeds of the Offering will be used by the Company to complete the acquisition of the La Union Project from Riverside Resources Inc., (see news release dated September 6, 2024), to continue a small exploration program at its North Island Copper Property, to retire existing payables and for general working capital purposes. Finders' fees or commissions may be paid in connection with the completion of the Offering, and all securities issued in the Offering will be subject to a four-month-and-one-day statutory hold period.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Canadian Investment Regulatory Organization Trade Resumption - CYG

Canadian Investment Regulatory Organization Trade Resumption - CYG

Trading resumes in:

Company: Cygnus Metals Limited

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less
Heritage Mining Provides Corporate Update

Heritage Mining Provides Corporate Update

(TheNewswire)

Heritage Mining Ltd.

NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Cygnus raises $18.3m to accelerate resource growth and mining studies

Cygnus raises $18.3m to accelerate resource growth and mining studies

-

Highlights

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Finlay Minerals announces the commencement of the 2025 PIL & ATTY Property Exploration Programs

Finlay Minerals announces the commencement of the 2025 PIL & ATTY Property Exploration Programs

finlay minerals ltd. (TSXV: FYL) (OTCQB: FYMNF) ("Finlay" or the "Company") is pleased to announce the start of the 2025 exploration programs for its PIL and ATTY Properties within the Toodoggone Mining District of Northern British Columbia .  These programs are fully funded under the Earn-In Agreements with Freeport-McMoRan Mineral Properties Canada Inc. ("Freeport"). Under these agreements, Freeport can earn up to an 80% interest in each property by investing $35 million in exploration expenditures and making cash payments of $4.1 million over a period of six years. ( Reference #1 ).

The exploration programs at PIL and ATTY are designed to best outline and prioritize as many targets as possible for drill testing in 2026. The 2025 programs at both PIL and ATTY will consist of the following activities with Finlay acting as Operator:

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Questcorp Mining

Questcorp Mining Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×