QMX Gold Corporation
TSX : QMX

QMX Gold Corporation

October 09, 2013 00:00 ET

QMX Gold Signs Waiver and Amendment Agreement With Third Eye Capital

Receives Deposit from Liberty Mines

TORONTO, ONTARIO--(Marketwired - Oct. 9, 2013) - QMX GOLD CORPORATION (TSX:QMX) ("QMX Gold" or the "Company") has signed a Waiver and Amendment Agreement (the "Agreement") related to the Bridge Financing provided by Third Eye Capital Corporation ("Third Eye") (Press Release of November 28, 2012). As part of the Agreement, QMX Gold has transferred a $1,000,000 Security Deposit to Third Eye to cover unpaid and accrued interest calculated to date as well as a waiver fee. The remaining balance will be used to prepay interest through to the maturity date and to prepay a portion of the principal due at maturity.

The Security Deposit was paid to Third Eye from the $1,000,000 cash deposit received from Liberty Mines Inc. in respect of the execution of the definitive purchase agreement (the "Definitive Agreement") for the Snow Lake Mine as announced on October 2, 2013.

The pending sale of the Snow Lake Mine to Liberty Mines is expected to be completed on or before November 25, 2013 and the additional proceeds of $19,000,000, payable on the closing will be used to pay the remaining debt obligation to Third Eye and for general working capital purposes. If Liberty elects to extend the terms of the Definitive Agreement, provisions have been made between QMX Gold and Third Eye to allow for the extension of the original maturity date, at Third Eye's option, subject to a monthly monitoring fee.

Pursuant to the Agreement, subject to approval of the Toronto Stock Exchange, QMX has agreed that it will re-issue the 2,900,000 warrants to acquire common shares of the Company previously granted to Third Eye at a new exercise price of $0.0465 (or such other price as may be adjusted by the Toronto Stock Exchange), which represents the five-day VWAP of the common shares of the Company as traded on the Toronto Stock Exchange immediately prior to execution of the Agreement. The warrants will expire on their original expiry date of November 28, 2015.

In addition, Third Eye has waived the covenant breach that occurred June 30, 2013 as outlined in the press release dated August 15, 2013 and accordingly, the Company has regained access to its bank accounts.

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 extension of the note payable to Third Eye, the Company's ability to maintain the terms of the Agreement, completion of the sale of Snow Lake to Liberty Mines Inc., receipt of TSX approval, 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
    info@qmxgold.ca
    www.qmxgold.ca