Q-Gold Resources Signs Agreement to Acquire Prospective Colombian Gold Property
TORONTO, April 13, 2021 (GLOBE NEWSWIRE) -- Q-Gold Resources Ltd (TSXV: QGR, OTC: QGLDF, FRA: QX9G) (“Q-Gold” or the “Company”) is pleased to announce that it has
signed a binding Letter of Intent (“LOI”) with Quantum Energy and Gas, LLC (“Quantum”) to acquire 90% of the rights on the mining title for the highly prospective
Tintina concession (the “Mining Title”) (the “Transaction”). The Tintina concession is located in the municipality of Neira, Colombia with historical exploration
indicating the local presence of veins with free gold and gold in sulphides along with historic high-grade samples for Au and Ag.
About The Tintina Property
The concession is located in the jurisdiction of the Municipality of Neira, in the Department of Caldas, approximately 40 km NW of the city of Manizales. The area is accessed from the City of Manizales by the road that leads from this city to the city of Medellín, which is located approximately 110km to the north (Figure 1).
Figure 1 – Location of Tintina Concession
The project is positioned in the Central Cordillera of Colombia, which is the host to intrusion and porphyry-related deposit styles. In addition, the great structural complexity, dominated by several fault systems predominantly striking N-S being potential feeders to Au-mineralisation, adds to the prospectivity of the region.
In the past, the geology and the mineral resources have been described emphasizing the metallic occurrences of precious metals (Au and Ag) as well as copper, lead and zinc in sectors adjacent to the area. Previous exploration reported the local presence of veins with free gold and gold in sulphides in the lithological units and the main structures that cross the area, and localised artisanal mining occurred on the concession. Historic high-grade samples for Au and Ag are an encouragement for Q Gold to start exploration around the old Mina Tintina.
“We are delighted to establish a foothold in such prolific country for Au and other metals,” says Dr. Andreas Rompel, Q-Gold VP Exploration. “and even more so to kick-start a project in a highly prospective region with historic gold showings of 10g/t and more.”
Summary of the Transaction
The proposed aggregate purchase price to be paid for the assignment of the Mining Title has been agreed upon as described below:
- Q-Gold shall make and assume the investments corresponding to 100% of OPEX and CAPEX, for the proper development of the Mining Title;
- The payment of a US$1,000,000, at the time that cumulative production of 250 kilos of AU is achieved from the Mining Title in favor of the original assignors;
- The payment of US$1,000,000 at the time that cumulative production of 500 kg of AU is achieved from the Mining Title in favor of the original assignors;
- Payment of one US$100,000 on closing of the Transaction to Quantum;
- Participation of Quantum in a percentage of 2% of the total royalties of the Mining Title object of this business in perpetuity; and
- Issuance of 7,000,000 common shares of Q-Gold.
The completion of the Transaction is subject to customary closing conditions, including due diligence to the satisfaction of Q-Gold and the parties entering a definitive agreement. The Transaction is classified as an Expedited Transaction pursuant to the policies of the TSXV and is subject to regulatory approval, including that of the TSXV. There can be no assurances that the proposed Transaction will be completed as proposed, or at all.