QMX Gold Corporation

QMX Gold Corporation

October 02, 2013 08:30 ET

QMX Gold Enters Into Definitive Agreement with Liberty Mines to Sell Snow Lake Mine

TORONTO, ONTARIO--(Marketwired - Oct. 2, 2013) - QMX GOLD CORPORATION (TSX:QMX) ("QMX Gold" or the "Company") has entered into a definitive purchase agreement with Liberty Mines Inc. (TSX:LBE) ("Liberty") for Liberty to acquire 100% ownership of the Snow Lake gold project and related property in consideration for a cash payment of US$20,000,000 (see press release dated August 29, 2013).

As part of the agreement, Liberty has placed US$1,000,000 as a down payment on the purchase price, with the remaining purchase price of US$19,000,000 to be paid upon closing of the acquisition, which is expected to occur on or before November 25, 2013.

Under the terms of the agreement, Liberty Mines can elect to extend the closing of the transaction until January 14, 2013, upon which Liberty Mines will pay QMX Gold an extension fee of US$100,000. Closing of the acquisition remains subject to a number of conditions, including without limitation, receipt all necessary government and regulatory approvals in Canada and China, completion of due diligence, and Liberty Mines securing the financing necessary to complete the acquisition. Further details of the acquisition can be found in the press release dated August 29th, 2013.

QMX Gold will use the proceeds of the sale to pay its existing debt obligation to Third Eye Capital and for general working capital purposes.

"Having executed the definitive agreement with Liberty was an important step in moving the transaction forward," stated Brett New, President and Chief Executive Officer of QMX Gold. "This transaction will ultimately allow QMX to repay its bridge lender in full and focus on its Quebec operations."

Cautionary Note Regarding Forward-Looking Information and Mineral Resources:

This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to the completion of the acquisition, the future financial or operating performance of QMX Gold, its properties and/or its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

Contact Information

  • QMX Gold Corporation
    Brett New
    President and CEO
    (416) 861-5904

    QMX Gold Corporation
    Louis Baribeau
    Public Relations
    (514) 667-2304

    QMX Gold Corporation
    Rob Hopkins
    Investor Relations
    (416) 861-5899

    QMX Gold Corporation
    Toll free: +1 877-717-3027