Canadian explorer Q2 Metals (TSX-V:QTWO) has raised an initial C$2.5 million ($2.8 million) following the closing of the first tranche of its non-brokered private placement.
Under the first tranche, the junior explorer has issued 1,142,857 flow-through units, comprising one flow-through common share and half a share purchase warrant, at C$0.35 each to raise C$400,000.
The placement attracted additional subscriptions of 142,857 flow-through units above the original offering of 1 million units.
A further 8,519,998 non-flow-through units, also comprising one flow-through common share and half a share purchase warrant, were issued at C$0.25 each raising C$2.13 million.
Each full warrant will be exercisable for one non-flow through common share at C$0.50 within two years.
The first-tranche shares are subject to a hold period expiring on 1 December 2024.
The cash raised from the issue of flow-through shares will be used to fund exploration, while the funds from the non-flow through shares will top up Q2’s working capital.
Q2, which has a market capitalisation of C$30.1 million, has a portfolio of lithium projects in the Eeyou Istchee James Bay region of Québec, including the Cisco Lithium Property.
Cisco has “district-scale potential”, according to Q2, with an already identified mineralised zone and a discovery drill result of 115.4m @ 1.40% lithium oxide, cumulatively in five separate pegmatites.
The property is located about 150km north of Matagami and comprises 222 mineral claims spanning 11,374 hectares.
Exploration at the 8,668-hectare Mia Lithium Property, meanwhile, is focused on the more than 10-kilometre-long Mia trend, which is host to both the Mia 1 and Mia 2 lithium occurrences and 11 other mineralised zones along trend.
Closing of the second-tranche charity flow-through unit portion of the placement is scheduled for on or about 8 August 2024.
Write to Angela East at Mining.com.au
Images: Q2 Metals
