Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (12)	4/17/2015 3:28:05 PM
From: Goose94	Read Replies (1) \| Respond to of 203528

QMX Gold (QMX-V) April 17, '15 has entered into a definitive agreement to sell its Snow Lake Project, located in Snow Lake, Manitoba, to a wholly-owned subsidiary of Hudbay Minerals Inc. Under the terms of the agreement, Hudbay will acquire 100% of QMX Gold’s interest in the Snow Lake Project for US$12.3 million in cash on closing and a contingent payment of US$5 million, payable if the price of gold is equal to or greater than US$1,400/oz on the third anniversary of the closing date. The Snow Lake Project consists of the Snow Lake mine and an associated processing plant, which are currently on care and maintenance, and C$1.867 million in cash, which supports the closure obligations associated with the property. The transaction is expected to close on or about April 30, 2015 and is subject to regulatory and third party approvals and customary conditions precedent. QMX Gold will use the proceeds of the sale, including its right to receive the contingent payment, to pay down the credit facility held by Third Eye Capital Corporation (“TEC”). The Company is currently negotiating with TEC to come to a mutually satisfactory resolution with respect to the remaining debt outstanding. QMX Gold will continue to operate the Aurbel Mill at its Val d’Or property to fulfill the custom milling agreement to process ore from the Elder Mine for Abcourt Mines Inc. (“Abcourt”). QMX Gold has recently extended the term of the custom milling agreement to end June 2015 with the option for Abcourt to extend it by an additional month in order to process all of the ore provided by Abcourt. The Company also continues to look for other strategic acquisitions in the Val d’Or region to ensure the continuation of operations past the custom milling agreement. Brett New, President and CEO of QMX Gold, commented: “I’m very pleased to announce that Hudbay, a well-established Canadian mineral producer, will be acquiring the Snow Lake Project. We remain confident in the historic Snow Lake mine, but this transaction will now permit QMX Gold to move forward and focus on its assets in Quebec.”