MetalQuest Mining Completes Sale of its Minority Interest in its Murray Brook Polymetallic Project to Canadian Copper Bathurst Mining District New Brunswick
MetalQuest Mining TSX-V: MQM OTCQB:MQMIF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.metalquestmining.com
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MetalQuest Mining Completes Sale of its Minority Interest in its
Murray Brook Polymetallic Project to Canadian Copper
Bathurst Mining District New Brunswick
February 1st, 2024, Rockport, Ontario – (TSX.V: MQM; OTCQB: MQMIF; FSE: E7Q.F )
(“MQM” or “Company”) Further to the news release dated September 12, 2023, MQM is pleased
to provide an update on the sale of MetalQuest Mining’s minority share of the Murray Brook
Polymetallic Project, located in the Bathurst Mining Camp, New Brunswick. By mutual agreement
both parties, MetalQuest Mining (MQM) and Canadian Copper Inc. (CCI) have signed a Asset
Purchase Agreement dated January 2024. To that end, CCI and MQM have concluded the sale of
MQM’s 28.2% (as of February 2023) interest in and to the Murray Brook Mining Lease 252 and
Claim Block 4925 situated in Restigouche and Northumberland counties, New Brunswick
(collectively, the “Mining Asset”). CCI also signed a definitive purchase agreement with
Votorantim Metals Canada (VMC) on August 2 nd to acquire VMC’s majority interest in Murray
Brook. On January 30 th 2024, MQM received its issuance of shares and warrants and the funds
have settled into the treasury of MetalQuest Mining.
Chairman and CEO Harry Barr states, “ We are pleased to have closed the deal with Canadian
Copper Inc (CCI) to sell our minority interest in the Murray Brook Polymetallic Project. Over the
term of the agreement, we may receive up to $2.3 million in cash. As part of the Asset Purchase
Agreement the Company has received 2.5 million units of the Company’s shares. The 2.5 million
warrants are for 5 years from the date of issuance. MQM has been issued a royalty of 0.33%. CCI
will have the right to purchase half of the 0.33% royalty for $1 million. A final instalment of
$1,000,000 will be paid to MetalQuest within 31 days of the initiation of commercial production.
As a reminder to shareholders, MQM already has an additional 0.67% of a royalty from an earlier
transaction. The sale of this asset will constitute a non-dilutive financing for the Company and
still allow us to participate in the upside of this project through the ownership of CCI shares,
warrants and our project royalties.”
MetalQuest Mining TSX-V: MQM OTCQB:MQMIF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.metalquestmining.com
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Terms of the Asset Purchase Agreement
- An initial instalment of $300,000 in cash has been paid by CCI to MQM.
- A final instalment of $1,000,000 will be paid within 31 days of the initiation of commercial
production from a mine located on the Mining Asset.
- MQM has been issued 2,500,000 CCI units. There will be a hold period of four months and
a day from the date of issuance after which, 25% of the total units shall be released to
MQM every three months (a “quarter”) resulting in 100% of the units being released to
MQM after four (4) quarters from the conclusion of the initial hold period, each unit
consisting of one common share priced using a 30 -day VWAP ended on the date
immediately prior to the signing of the Asset Purchase Agreement (“deemed price”) and
one nontransferable warrant of CCI, with each warrant exercisable for five years from the
date of issuance at an exercise price that is 150% of the deemed price
- CCI has granted MQM a net smelter returns royalty (“NSR”) of 0.33% on the Mining
Asset, provided that 50% of such NSR may be repurchased by CCI at its sole discretion
for $1,000,000 at any time.
About MQM
Metal Quest Mining (MQM) owns a 100% of Otelnuk and is further looking to develop one of
the largest Iron ore projects in North America. The Lac Otelnuk Iron Ore Project is located in
Quebec’s Labrador Trough and is approximately 165 km by air northwest of the Town of
Schefferville, and 1200 km northeast of Montreal by air. Given the size and scope of the Lac
Otelnuk Project, management of MQM are working with a Toronto-based engineering company
familiar with the project to create a go-forward development plan. The Quebec government has
recently transferred the claims into MQM’s name and management is accumulating a vast
amount of technical data as approximately $150 million has been expended on the project to
date. Going forward, one of our primary objectives will be to work with Wasayao Strategy
Group, a Quebec-based First Nations consulting firm, that will work with MQM to secure
Memorandums of Understanding (MOU) with local First Nations and other stakeholders.
Management is continuing to develop its in-house Iron ore database to enable the Company to
secure an Option/Joint Venture partner from the Iron ore industry.
MetalQuest Mining TSX-V: MQM OTCQB:MQMIF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.metalquestmining.com
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The Company owns 2.5 million units of Canadian Copper (CCI) and 2 NSR royalties totalling 1%
in Murray Brook PEA Stage Zinc-Polymetallic Deposit, situated in the famous Bathurst Mining
District, New Brunswick, Eastern Canada. Canadian Copper Inc (CCI) has the right to purchase
half of a 0.33% royalty for $1 million dollars and must pay MQM a pre- production cash payment
of $1 million after the project goes into production.
Investors are invited to visit the MetalQuest Mining website at www.metalquestmining.com
where they can review the company and its corporate activities. Any questions or comments can
be directed to Harry Barr at [email protected] or Farid Mammadov at
[email protected] or call 613 659 2773.
Opt-in List
If you have not done so already, we encourage you to sign up on our website
(www.mqmining.com) to receive our updated news. On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release. Cautionary Note Regarding Forward Looking State ments: This release contains
forward-looking statements that involve risks and uncertainties. These statements may differ
materially from actual future events or results and are based on current expectations or beliefs.
For this purpose, statements of historical fact may be deemed to be forward-looking statements.
In addition, forward -looking statements include statements in which the Company uses words
such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”,
“plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar
expressions. These statements by their nature involve risks and uncertainties, and actual results
may differ materially depending on a variety of important factors, i ncluding, among others, the
Company’s ability and continuation of efforts to timely and completely make available adequate
current public information, additional or different regulatory and legal requirements and
restrictions that may be imposed, and other factors as may be discussed in the documents filed
by the Company on SEDAR (www.sedar.com), including the most recent reports that identify
important risk factors that could cause actual results to differ from those contained in the
forward-looking statem ents. The Company does not undertake any obligation to review or
MetalQuest Mining TSX-V: MQM OTCQB:MQMIF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.metalquestmining.com
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confirm analysts’ expectations or estimates or to release publicly any revisions to any forward -
looking statements to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Investors should not place undue reliance on forward-looking
statements.