Sterling Metals (TSX-V:SAG) has completed its acquisition of QcX Gold (TSX-V:QCX), expanding its landholding across the Batchewana Copper Belt in Ontario, Canada, by about 40%.
The court-approved transaction creates a consolidated land package exceeding 35,000 hectares and adds multiple copper and gold targets surrounding Sterling’s Soo Copper Project.
QcX shareholders received one Sterling share for every 4.81026 shares held under the arrangement, which was approved at QcX’s annual general and special meeting on 18 August.
Sterling issued 4.92 million shares, 1.65 million warrants, and 299,361 options to former QcX securityholders. The replacement warrants and options retain the same economic terms as the original QcX securities.
Existing Sterling shareholders now hold about 90.4% of the combined company, while former QcX shareholders own 9.6%.
The acquisition also adds QcX’s Golden Giant Gold Project in Québec’s James Bay region and the Fernet Gold Project in the Abitibi greenstone belt.
Golden Giant lies 2.9km from Azimut Exploration (TSX-V:AZM)’s Patwon discovery at the Elmer Gold Project. Fernet is contiguous with Wallbridge Mining (TSX:WM)’s Fenelon/Martiniere Property.
Former QcX CEO Albert Contardi has joined Sterling’s board following completion of the acquisition.
Contardi is President of Toronto-based exempt market dealer CFT Financial and has more than 15 years of legal, investment, and capital markets experience across the mining, technology, and biotechnology sectors.
QcX shares are expected to be delisted from the TSX Venture Exchange after the close of trading on or around 1 September. Sterling will also apply for QcX to cease being a reporting issuer under Canadian securities laws.
Sterling Metals is a Canada-based mineral exploration company focused on the Soo Copper Project in Ontario and the Adeline Copper-Silver Project in Labrador.
Write to France Pinzon at Mining.com.au
Images: Sterling Metals
