QC Copper and Gold Inc (CVE:QCCU) (OTCMKTS:QCCUF) has told investors it is set to amend the terms of the previously announced acquisition of a 50% ownership interest in the 987-hectare advanced-stage Roger gold-copper exploration project in the Chibougamau district of Quebec.
The company is buying the stake from Pasofino Gold Ltd, while the other 50% interest remains with SOQUEM - a subsidiary of Investissement Québec.
In a statement on May 14, 2021, the firm said that on closing, it will now issue Pasofino $1 million in cash and issue 1.150 million company shares.
READ: QC Copper and Gold set to acquire a 50% stake in the Roger Gold-Copper project in Quebec
A further 4.350 million shares may be issued to Pasofino if, within six months, a new NI 43-101 technical report is produced on the project, which has a calculation equal to or greater than both the aggregate gold equivalent ounces or gold only ounces referred to in the technical report of October 2018, it added.
On April 5, 2021, when the deal was first announced, QC Copper said that, upon closing, it would issue Pasofino $1 million in cash and 5.5 million shares, representing a total consideration paid to Pasofino, as at QC Copper’s April 2, 2021, closing share price, of $2 million.
Stephen Stewart, QC Copper's CEO, said in a statement: "These are favourable terms for this strategic asset acquisition that fits into our vision for a consolidated Chibougamau District. The Roger is a sizable NI 43-101 pit constrained gold-copper resource with excellent expansion potential. It is also about 10 km from the property boundary of our flagship Opemiska project."
"The Opemiska and its ongoing drill program remains our core focus however we felt compelled to act when Roger opportunity presented itself. When shareholders evaluate this pit constrained resource relative to the consideration paid, I believe they will see the value of this accretive acquisition," Stewart added.
The 2018 updated estimate showed an indicated resource of 10,900,000 metric tonnes at a grade of 0.85 grams per ton (g/t) of gold, 0.80 g/t of silver and 0.06% of copper for a total of 333,000 ounces of gold-equivalent, using a cut-off grade of 0.45 g/t gold-equivalent.
The lower confidence inferred resource was estimated at 6,569,000 metric tonnes at a grade of 0.75 g/t of gold, 1.18 g/t of silver and 0.11% of copper for a total of 202,000 ounces of gold equivalent.
Contact the author at giles@proactiveinvestors.com