Mr. Richard Penn reports
Q PRECIOUS & BATTERY METALS CORP. CLOSES MATANE HYDROGEN ACQUISITION AND CLOSES 1ST TRANCHE OF PRIVATE PLACEMENT
Q Precious & Battery Metals Corp. has closed the first tranche of its private placement and has closed its amended and restated acquisition agreement to acquire Matane hydrogen project.
Private Placement
The company closed the first tranche of its previously announced private placement offering (see news release dated Feb. 21, 2025) for gross proceeds of $536,555.03, issuing a combination of flow-through (FT) shares at a price of nine cents per FT share and non-flow-through (NFT) units at a price of 7.5 cents per NFT unit, subject to CSE approval.
Each NFT unit consists of one non-flow-through common share and one warrant. Each warrant will entitle the holder to purchase a common share at a price of 10 cents per share for a two-year term.
The company paid finders' fees of $22,875 and 85,000 finders' warrants to eligible finders. Each finder's warrant shall be exercisable at a price of 10 cents per share for a two-year term.
The securities issued will be subject to a four-month-and-one-day hold from the date of issuance.
The proceeds from the offering will be for mineral and gas exploration activities and general working capital.
Matane Acquisition
The company also announces that it has closed it previously announced amended and restated acquisition agreement (see news releases dated Jan. 30, 2025, and Feb. 2, 2025). Under the terms of the acquisition agreement, the company made a $25,000 payment to Zadkiel Holdings Inc. and issued six million common shares to the beneficial owners in exchange for the Matane hydrogen project. In addition, the company granted the sellers a 1.2-per-cent royalty on revenues from the sale of any hydrogen or other minerals on the Matane hydrogen project. Fifty per cent of the sellers' royalty may be purchased for $1.2-million. The sellers' royalty, and any proceeds from a buyout of the sellers' royalty is split pro rata between the sellers based on their proportional interest in the acquisition agreement.
In addition, in accordance with the terms of the strategic collaboration agreement with Quebec Innovative Materials Corp. (QIMC) (see news release dated Feb. 2, 2025), the company has issued four million common shares to QIMC and has granted QIMC a 0.80-per-cent royalty on revenues from the sale of any hydrogen or other minerals on the Matane hydrogen project. Fifty per cent of the QIMC royalty may be purchased for $800,000.
The sellers and QIMC are arm's length to the company. The securities issued will be subject to a four month and one day hold from the date of issuance.
The Matane hydrogen project encompasses an exploration area of significant geological interest, positioned within a transition zone between Cambro-Ordovician and Siluro-Devonian rock formations. The property spans approximately 80 claims covering 26 kilometres along the Schicksock-South fault zone, a well-defined structure with strong indicators for natural hydrogen formation.
The Matane region's unique geological setting, characterized by basaltic and peridotitic source rocks, tectonized zones, and deep fault systems, presents an exceptional opportunity for hydrogen generation through oxidative hydrolysis and radiolytic reactions. The presence of porous and permeable sedimentary formations further enhances the potential for hydrogen accumulation.
About Q Precious & Battery Metals Corp.
Q Precious is a Canadian exploration company focused on critical minerals and energy transition resources. With a commitment to innovation and sustainability, Q Precious is pioneering efforts to explore and develop natural hydrogen and other strategic resources in Quebec and beyond.
We seek Safe Harbor.
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