Q2 Metals

Q2 Metals launches $8 million private placement 

Q2 Metals (TSX-V:QTWO) is undertaking a non-brokered private placement to raise C$7.5 million ($8.2 million) to fund exploration at its Canadian projects.

The Canadian explorer plans to issue up to 10.8 million units at C$0.4625 to raise just under $5 million. Each unit will consist of one flow-through common share and half a share purchase warrant.

Q2 is also offering up to 1 million units at C$0.35 per unit, comprising one flow through share and half a warrant, to raise up to C$350,000.

Canada-listed companies can issue flow-through shares that allow investors to claim tax credits for the amount they invest. Shares offered under this mechanism are usually issued at a premium to the price of a company’s shares at the time.

Q2 shares closed at C$0.275 prior to the announcement. 

The remaining C$2.2 million will be raised via the issue of up to 8.62 million units at C$0.25, with each unit comprising one non-flow-through common share and half a warrant.

Each full warrant will be exercisable for one non-flow through common share at C$0.50 within two years. 

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 has a portfolio of lithium projects in the Eeyou Istchee James Bay region of Québec.

Earlier in July, the company, which has a market capitalisation of C$22.4 million, released analytical results from the ongoing 2024 mapping and sampling field program at the Cisco Property which confirmed the presence of lithium in each of the 15 outcrop zones.

The results have given the company “the confidence to expand its drilling in a systematic manner” to the south of recent drill holes approaching the CO3 zone. 

Q2 is also advancing exploration at the 10km-long Mia Trend on its 100% owned, 8,668-hectare flagship Mia Lithium Property, and owns the Big Hill and Titan gold projects covering approximately 110 km² in the Talgai Goldfields of the broader Warwick-Texas District of Queensland, Australia.

Write to Angela East at Mining.com.au 

Images: Q2 Metals 
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Written By Angela East
Managing Editor Angela East is an experienced business journalist and editor with over 15 years spent covering the resources and construction sectors and more recently working as a communications specialist handling media relations for junior resources companies.