Under terms of a plan of arrangement, Canada Strategic acquired from Sphinx Resources (TSXV:SFX) three gold projects, including Sphinx's 50% interest in the Cheechoo-Éléonore Trend project, and the remaining 50% interest in that project held by Sirios Resources (TSXV:SOI).
Matamec shareholders received 0.27 common shares of Canada Strategic following a share consolidation, in exchange for each Matamec common share held.
Goldcorp (TSX:G) invested C$3.7 million, which was converted into QPM units at $0.61 each. Every unit consists of one QPM common share of and half a common share purchase warrant, with each whole warrant allowing the holder to buy one additional QPM common share for $0.85, for a period of two years following closing. If Goldcorp exercises all its warrants on closing of the transaction, it will hold 8.56 million QPM shares, or about 19.2% of the issued and outstanding equity.
Within the scope of the transaction, the Caisse de dépôt et placement du Québec invested $1.4 million, which was also converted into units on the same terms as the Goldcorp investment. If la Caisse exercises all its warrants on closing of the transaction, it will hold about 9.6% of QPM.
As part of the business combination, QPM raised $5 million, which it will use to fund its exploration objectives.
"This gives QPM the funds we need to accelerate drilling and confirm what we estimated to be a potential of several million ounces at Sakami, as well as to continue exploring other projects in Eeyou Istchee James Bay territory," QPM CEO Normand Champigny said.
MPQ plans to have Matamec's shares delisted from the TSXV exchange.
It was Matamec's asset contribution that significantly lifted the profile of this transaction, including its 50% interest in the prospective Sakami gold property, close to the Éléonore mine; the Opinaca Gold West project (100%), in the Quebec Plan Nord region in similar geological settings as established gold-producing mines; and the Casa-Detour property (100%), east of the Burntbush property of Detour Gold.
Matamec also contributed the Ontario-based, Matheson joint venture (50%) and Pelangio (100%) project, near the Hoyle Pond mine in Timmins.
Matamec's other mining projects comprised the suite of energy metals, including an option on the Tansim lithium project; the 100%-owned Fabre cobalt project; 100% of the Vulcain nickel project and off course the feasibility-stage, 72%-owned flagship Kipawa rare earths project, which was a joint venture with Ressources Québec (28%).
End user Toyota Tsusho of Nagoya, Japan, also holds a 10% net profits interest in the Kipawa deposit.
