Fury Gold Mines (TSX:FURY,NYSEAMERICAN:FURY) introduced that its acquisition of Québec Valuable Metals (QPM) (TSXV:QPM,OTCQB:CJCFF) is advancing on schedule, on observe to achieve completion earlier than April 30.
The deal, announced in February, goals to consolidate a 157,000 hectare portfolio of gold and important minerals tasks in Québec, positioning the mixed firm for enhanced exploration and development.
QPM has obtained each a no-objection letter from Firms Canada and an interim order from the Québec Superior Courtroom. These permit it to proceed with an April 22 assembly the place shareholders will vote on the proposed acquisition.
For its half, Fury has secured conditional approvals from the Toronto Inventory Trade and NYSE American.
QPM’s shareholder round, which is now obtainable on SEDAR+, outlines the main points of the merger and contains up to date monetary disclosures from Fury. Notably, Fury expects to file a non-cash impairment cost as of December 31, 2024, to align the carrying worth of its mineral properties with its market capitalization.
Beneath the phrases of the settlement, QPM shareholders will obtain 0.0741 Fury shares for every QPM share, valuing QPM at roughly C$0.04 per share — a 33 p.c premium based mostly on closing costs as of February 25.
Upon completion of the deal, Fury shareholders will personal roughly 95 p.c of the mixed firm, whereas QPM shareholders will maintain the remaining 5 p.c.
“This transaction is an thrilling alternative given it doubles Fury’s land bundle within the Eeyou Istchee James Bay Area of Quebec and unites complementary property, groups, and investor bases, which ought to in the end enhance shareholder worth at each corporations,” Fury CEO Tim Clark mentioned, describing the transaction as a transformational step.
Normand Champigny, CEO of QPM, echoed this sentiment, commenting, “By combining with Fury, QPM’s shareholders will profit from the synergies and value financial savings of leveraging the mixed firm’s glorious administration group for funding and acquiring required permits to proceed drilling at Sakami.”
The merger will considerably broaden Fury’s footprint in Québec’s resource-rich Eeyou Istchee James Bay area.
QPM’s flagship Sakami undertaking, a 70,900 hectare gold and lithium property, has demonstrated robust exploration potential, with drilling figuring out gold mineralization throughout widths of as much as 75 meters and depths of as much as 500 meters.
Its Elmer East undertaking incorporates a 4.2 kilometer gold- and base metals-bearing construction, the place seize samples have returned gold values as excessive as 68.1 grams per metric ton, alongside important zinc and copper concentrations.
Past gold and lithium, QPM brings a strategic uncommon earths asset into the mixed portfolio.
The Kipawa heavy uncommon earth parts undertaking, by which QPM holds a 68 p.c curiosity, hosts a traditionally outlined 2013 reserve estimate of 19.8 million metric tons. It has street entry and is in proximity to infrastructure.
Whereas the transaction is shifting ahead as deliberate, it stays topic to varied situations, together with approval from at the least two-thirds of QPM shareholders, and remaining court docket and regulatory approvals.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.