Questcorp Mining Provides Clarification on Private Placement Investment
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.
- Each unit consists of one common share and half a warrant (each whole warrant allows purchase of an additional share at $0.20, exercisable until 24 Oct 2027, with accelerated expiry if the share price stays ≥ $0.50 for ten consecutive trading days).
- A $2,000,000 portion of the proceeds is held under a sharing agreement with Sorbie Bornholm LP; settlement will occur in 24 monthly tranches tied to a benchmark price of $0.1949 per unit, with upside/downside adjustments illustrated.
Key Details
- Units issued: 14,000,334
- Price per unit: $0.15
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Gross proceeds: $2,100,050
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Unit composition:
- 1 common share
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½ of a share purchase warrant (full warrant = right to buy one additional share at $0.20)
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Warrant terms:
- Exercise price: $0.20 per share
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Expiry: 24 Oct 2027 (accelerated expiry if closing price ≥ $0.50 for ten consecutive trading days)
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Sharing Agreement with Sorbie Bornholm LP:
- Amount held under agreement: $2,000,000 of the proceeds
- Funds placed in escrow with a third‑party custodian
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Settlement over 24 monthly tranches; each tranche nominally $79,792 (subject to adjustment)
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Benchmark price for settlements: $0.1949 per unit
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Settlement amount examples based on actual settlement price:
- Settlement Price $0.2449 → Monthly Settlement $100,262
- Settlement Price $0.1949 (benchmark) → Monthly Settlement $79,792
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Settlement Price $0.1449 → Monthly Settlement $59,322
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No change in the number of units issued to Sorbie regardless of settlement price; only the cash amount received by Questcorp varies proportionally.
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Use of proceeds: (not explicitly detailed in release – typical for working capital, exploration activities, and related corporate purposes).
Notable Quotes
(None provided in the release)