QMX Gold Corporation

QMX Gold Corporation

June 29, 2017 07:00 ET

QMX Strengthens Balance Sheet; Drilling Commenced on Bonnefond South Plug

TORONTO, ONTARIO--(Marketwired - June 29, 2017) - QMX Gold Corporation ("QMX" or the "Company") (TSX VENTURE:QMX) has entered into an agreement to sell 100% of its non-core Aurbel East property, located in Val d'Or, Quebec, to Probe Metals Inc. ("Probe Metals") for $1,000,000 (see Figure 1).

QMX Gold intends to use the proceeds of the sale for general working capital purposes and to fund core exploration activities. No finder's fees are payable.

"QMX continues to take a methodical and systematic approach towards exploration on its extensive land package located in the heart of the Val d'Or mining camp. The Aurbel East sale is consistent with QMX's strategy to focus its efforts on core portions of its property, while strengthening its already significantly improved balance sheet. QMX will continue to allocate capital towards near term priority targets that show the strongest potential for new discoveries, building on our recent successes in the region." stated Brad Humphrey, President and CEO.

The transaction is expected to close on or about July 12, 2017 and is subject to regulatory and third party approvals and customary conditions precedent. Based on its QMX shareholding, Probe Metals is an insider of QMX and consequently the proposed property sale is a related party transaction as defined by Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") and, for the purposes of the TSX Venture Exchange, is a non-arm's length transaction. As the fair market value of the subject matter of, and the fair market value of the consideration for, the sale transaction is less than 25% of QMX's market capitalization, QMX intends to rely on available exemptions from the MI 61-101 requirements to obtain a formal valuation and minority shareholder approval for the proposed sale transaction.

Drilling Commenced on Bonnefond South Plug

QMX Gold commenced drilling on the Bonnefond South Plug zone to test a reinterpretation of the historical geological model. The 4,500 metre program is set to confirm vein, fault and shear orientations by more closely spaced drilling using oriented core. In historical drilling, AUR Resources discovered a plug-like, tonalitic intrusion approximately 2 kilometers east of the Louvicourt Mine (referred to as the Bonnefond South Plug), which contains gold in association with shear and tensional quartz-tourmaline veining. Results reported by AUR include 1.9 g/t Au over 55 meters including 10.8 g/t Au over 3 meters (Hole 315-22, QMX historical data base, all reported lengths are core lengths). Gold mineralization is also associated with shear zones in the adjacent volcanic rocks where historical drilling returned up to 12.2 g/t Au over 12 meters (Hole 315-36B, QMX data base). The current geological interpretation indicates that the gold system has likely been cross cut by late faults and mineralization remains open.

The gold target environment bears many similarities to the gold target environment in the Southwestern Zone. All historical drill holes have been drilled from North to South and oriented core was not utilized. The Bonnefond South Plug lies near a pronounced flexure in the regional trend of the Manitou Shear and it is cut by a series of mineralized faults. AUR interpreted five such parallel structures.

To view Figure 1 - Val d'Or Mining Camp Property, please click the following link: http://media3.marketwire.com/docs/QMXFig1.pdf

About QMX Gold Corporation

QMX Gold Corporation is a Canadian based resource company traded on the TSX-V under the symbol "QMX". The Company was recently restructured and is now systematically exploring its extensive property position in the Val d'Or mining camp in the Abitibi District of Quebec. QMX is currently drilling on the Bonnefond South Plug and is evaluating its recent discoveries on the Southwestern and Bevcon Zones in order to set follow up drill targets. In addition to its extensive land package, QMX owns the Aurbel gold mill.

Cautionary Note Regarding Forward-Looking Information:

David Rigg is a qualified person under National Instrument 43-101 and Senior Vice President, Exploration of QMX. He has reviewed the scientific and technical information in this press release.

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 regarding the future plans, operations and activities, proposed use of proceeds, receipt of required permits and obtaining necessary financing, and the ability of the Company to continue as a going concern. 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 disclosure documents of the Company filed under the Company's profile 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Brad Humphrey
    President and CEO
    Tel: (416) 861-5887

    Louis Baribeau
    Public Relations
    Tel: (514) 667-2304

    QMX Gold Corporation
    Toll free: +1 877-717-3027
    Email: info@qmxgold.ca
    Website: www.qmxgold.ca