QC Copper and Gold Inc. (TSX-V:QCCU, OTCQB:QCCUF) said it intends to enter into agreements to sell 7,142,856 common shares of Baselode Energy to arms-length parties.
On completion of the sale, QC Copper will retain 10,714,287 shares in Baselode which the company will continue to hold for investment purposes. The company said it has no intention of selling its remaining investment in Baselode at this time.
The proceeds of the sale will be primarily used to fund exploration activities at QC Copper's Opemiska project and general working capital purposes.
READ: QC Copper and Gold highlights Quebec project's gold potential
QC Copper CEO Stephen Stewart commented: "Based on the recent success of Baselode Energy and strong investor demand for its shares, we received numerous offers to privately purchase our Baselode position. We remain significant investors in Baselode, and are focused on ensuring that its shares are placed in the right hands."
"We see this transaction as a very attractive opportunity to place some of our Baselode shares in the hands of highly reputable, institutional investors while adding a substantive non-dilutive cash injection into QC Copper. This significant and ongoing investment reflects our tremendous support for CEO, James Sykes and the rapidly evolving Baselode story," he added.
The Opemiska Copper Complex is located adjacent to Chapais, Quebec, within the Chibougamau district. Opemiska is also within the Abitibi Greenstone belt and within the boundaries of the Province of Quebec's Plan Nord, which promotes and funds infrastructure and development of natural resource projects.
The Opemiska property covers 12,782 hectares and covers the past producing Springer, Perry, Robitaille and Cooke mines, previously owned and operated by Falconbridge between 1953-1991. The project hosts excellent on-site infrastructure, including a power station and direct access to Highway 113 and the Canadian National Railway (NYSE:CNI).
Contact the author at jon.hopkins@proactiveinvestors.com