Mr. Richard Penn reports
Q PRECIOUS & BATTERY METALS CORP. ACQUIRES MATANE HYDROGEN PROJECT, PROPOSED FINANCING AND STRATEGIC COLLABORATION AGREEMENT WITH QUEBEC INNOVATIVE MATERIALS CORP.
Q Precious & Battery Metals Corp. has agreed to acquire the Matane hydrogen project, a hydrogen exploration property located in the Appalachian region of Quebec. Additionally, Q Precious has entered into a strategic collaboration agreement with Quebec Innovative Materials Corp., North America's premier natural hydrogen exploration company, to accelerate the discovery and development of clean natural hydrogen resources in Quebec.
Matane Hydrogen Project Acquisition
The Matane hydrogen project encompasses a highly prospective exploration area positioned within a transition zone between Cambro-Ordovician and Siluro-Devonian rock formations. The property spans approximately 80 claims covering 26 kilometres along the Schickshock-South fault zone, a well-defined structure with strong geological 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 environment for hydrogen generation through oxidative hydrolysis and radiolytic reactions. The presence of porous and permeable sedimentary formations further enhances the potential for hydrogen accumulation, making this acquisition a strategic addition to Q Precious's portfolio.
Strategic collaboration with Quebec Innovative Materials
In conjunction with the acquisition, Q Precious has a strategic collaboration agreement with Quebec Innovative Materials to leverage its cutting-edge expertise in hydrogen exploration and development. Quebec Innovative Materials, which has achieved breakthrough results with hydrogen concentrations exceeding 7,000 parts per million and the near absence of carbon dioxide (CO2) and methane (CH4) (concentrations in trace amounts) in its Quebec properties, will provide technical insights and operational support to optimize exploration and resource validation at Matane.
This partnership aims to accelerate natural hydrogen exploration in the region, combining Q Precious's robust geological expertise with Quebec Innovative Materials' field experience and innovative methodologies.
"Acquiring the Matane hydrogen project represents a significant milestone for QMET as we expand our footprint in the rapidly emerging natural hydrogen sector. The project's geological characteristics align perfectly with our mission to unlock Quebec's energy potential sustainably. Through our strategic partnership with QIMC, we are well positioned to advance exploration efficiently and responsibly," said Richard Penn, president of Q Precious.
"We are thrilled to join forces with QMET on the Matane hydrogen project. This region holds tremendous potential, and by combining our expertise, we can accelerate the advancement of Quebec's clean natural hydrogen as a key energy source. This partnership further strengthens our commitment to positioning Quebec as a global leader in natural hydrogen development while enhancing energy independence," added John Karagiannidis, chief executive officer of Quebec Innovative Materials.
Looking Ahead
Q Precious and Quebec Innovative Materials will commence fieldwork and data acquisition in the coming months, prioritizing geological surveys, geochemical sampling and targeted drilling programs. Both companies remain dedicated to engaging with local communities and stakeholders to ensure responsible resource development aligned with environmental and regulatory standards.
Acquisition Terms
Q Precious has entered into an acquisition agreement dated Jan. 29, 2025, between Q Precious and the beneficial owners of the property. Under the terms of the agreement, the company is required to make a non-refundable $25,000 payment to Zadkiel Holdings Inc. and issue six million common shares to the sellers and four million common shares to Quebec Innovative Materials. The sellers and Quebec Innovative Materials 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.
In addition, Q Precious has granted the sellers and Quebec Innovative Materials a 2-per-cent royalty on revenues from the sale of any hydrogen or other minerals on the property. A total of 50 per cent of the royalty may be purchased for $2-million. The royalty, and any proceeds from a buyout of the royalty, is split equally between the sellers and Quebec Innovative Materials.
The closing of the acquisition agreement is subject to the completion of a private placement financing of common shares, warrants or a combination of both for gross proceeds of a minimum $500,000. This condition is for the sole benefit Q Precious and waivable by Q Precious in its sole discretion
The closing of the acquisition agreement is expected to occur on or before Feb. 28, 2025, and is subject to the approval of the Canadian Securities Exchange.
Perry Grunenberg, PGeo, a qualified person, as that term is defined under National Instrument 43-101, has reviewed and approved the technical information contained in this news release. Q Precious exploration programs are supervised by Dr. Mathieu Piche, OGQ, with an office in Val d'Or, Que. He is also a director of the company.
About Q Precious & Battery Metals Corp.
Q Precious & Battery Metals 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.
About Quebec Innovative Materials Corp.
Quebec Innovative Materials is a mineral exploration and development company dedicated to exploring and harnessing the potential of Quebec's abundant resources. Quebec Innovative Materials is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits. Quebec Innovative Materials is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, Quebec Innovative Materials aims to unlock the full potential of these materials to drive forward clean-energy solutions to power the artificial-intelligence and carbon-neutral economy and contribute to a more sustainable future. Quebec Innovative Materials is driving the future of natural hydrogen in Quebec.
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