Questcorp Mining Closes First Tranche of Private Placement

Executive Summary

• Questcorp Mining Inc. closed the first tranche of its non‑brokered private placement, issuing 14,000,334 units at $0.15 per unit for gross proceeds of $2,100,050.
• Proceeds are earmarked for exploration and drill work at the La Union Gold & Silver Project, upcoming work at the North Island Copper Property, and general working capital.
• A portion of the units ($2 M) is subject to a sharing agreement with institutional investor Sorbie Bornholm LP, which includes monthly settlement adjustments based on a benchmark price of $0.1949 per unit.

Key Details

• Units Issued: 14,000,334 (each consisting of one common share and half of a share purchase warrant).
• Pricing: $0.15 per unit; each warrant allows purchase of an additional share at $0.20 until 24 Oct 2027 (accelerated expiry if the share price ≥ $0.50 for ten consecutive trading days).
• Gross Proceeds: $2,100,050.
• Use of Proceeds:
• Advancement of ongoing exploration and drilling at La Union Gold & Silver Project.
• Exploration work at North Island Copper Property.
• General working capital.
• Sharing Agreement with Sorbie Bornholm LP:
• $2 M of the first‑tranche units held under the agreement.
• Monthly settlements over 24 months measured against a benchmark price of $0.1949 per unit.
• If Settlement Price > Benchmark, Questcorp receives >100% of the monthly settlement on a pro‑rata basis (no upper limit).
• If Settlement Price < Benchmark, Questcorp receives <100% of the monthly settlement on a pro‑ra­t­a basis.
• Corporate Finance Fee to Sorbie: $130,000 payable via issuance of 866,667 units at $0.15 per unit.
• Regulatory Exemptions: Units issued under the Listed Issuer Financing Exemption (NI 45‑106); no statutory hold periods apply.
• Future Tranche Plans:
• Anticipated additional tranche up to 9,333,000 units, targeting combined gross proceeds of $3,500,000.
• Remaining units to be offered under the Accredited Investor Exemption with a four‑month‑and‑one‑day resale restriction.
• Potential finders’ fees may be paid for third‑party introducers in the second tranche.
• Closing Conditions: Completion of final tranche subject to receipt of regulatory approvals.

Notable Quotes

(No direct quotes were provided in the release.)