Harfang Exploration (HAR-V)
Guy Le Bel's halted capital pool shell Redquest Capital (RQM), has completed its qualifying transaction by acquiring Harfang Exploration Inc., a Quebec gold explorer. The shell rolled back 1 for 4, which left it with 1,947,354 post-consolidated shares issued, then it issued 16,217,333 post-consolidated shares to its target's shareholders. Redquest also sold a $2.67-million private placement of 7,642,000 post-consolidated units at 25 cents and 1,916,250 post-consolidated flow-through shares at 40 cents.
Harfang's main project is the Lake Menarik project in Northern Quebec. It acquired this project for five million shares from Osisko Gold Royalties (OR-T) in June, 2016. Osisko is now the largest shareholder of Redquest Capital, with five million shares or 17.82 per cent.All shell directors and officers have resigned. Francois Goulet, a geologist and the president of Harfang, has taken over as the president and a director of Redquest. He was a consultant to Virginia Mines Inc., a former owner of the Lake Menarik property. Virginia Mines was acquired by Osisko Gold Royalties in February, 2015. Virginia's president at the time, Andre Gaumond, a geological engineer, is now the chairman of Redquest Capital. He is also a director of Osisko. Shortly before Osisko took over Virginia, the latter traded up to $17.20. (Osisko was not after the Lake Menarik project; it was after Virginia's sliding-scale 2.2-per-cent to 3.5-per-cent net smelter return royalty on the Eleonore gold mine.)
Mr. Le Bel, a mining engineer, was a founding director of Redquest Capital, but he was not its original promoter. The shell was listed by geologist and one-time shell-maker Brian Fowler in March, 2011, with a $300,000 initial public offering at 10 cents. Considering the 1-for-4 rollback, the break-even price for the shell's IPO shareholders is now 40 cents. The IPO shareholders will undoubtedly be looking to sell at a higher price than that, as a sort of compensation for being made to wait six years for a QT. (Shells should normally take only two or three years to close a deal.) Mr. Fowler resigned as president of the shell in July, 2016. He has since become the president of Yukon zinc-lead-silver explorer Blind Creek Resources (BCK-V).
Redquest Capital expects to begin trading as a shell graduate called Harfang Exploration (HAR-V) on Friday.
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