TORONTO, ONTARIO--(Marketwire - Aug. 30, 2012) - QMX GOLD CORPORATION (TSX:QMX)(OTCQX:QMXGF) ("QMX Gold" or the "Company") is announcing today that it will be extending the term of the USD $10,000,000 bridge financing agreement with Resource Income Fund L.P. ("RIF").
QMX Gold has successfully negotiated an extension to the bridge financing term outlined in the press release of January 5th, 2012. The two month extension of the facility will bring a new maturity date of October 31, 2012 which will provide QMX Gold with additional time to finalize the financing for the Snow Lake project, including the credit committee-approved $45 million term loan from Credit Suisse. The bridge facility will continue to carry an annual interest rate of 15% and will be paid at the closing of the term loan or at its maturity. In addition, the Company has agreed to pay RIF USD $500,000, as a fee for extending the facility.
In conjunction with the bridge financing, RIF was granted 200,000 warrants (4,000,000 warrants pre-consolidation, see Press Release dated July 3rd, 2012). In accordance with the extension, the parties have agreed that the post-consolidated 200,000 warrants shall be priced at CAD $0.381 per share, the 10-day VWAP of QMX Gold's common shares as of August 28, 2012. The warrants remain subject to the receipt of all applicable regulatory approvals, including approval of the TSX and shall remain subject to a statutory hold period of four months and one day.
Francois Perron, President and Chief Executive Officer of the Company, commented on the bridge facility extension: "RIF must be thanked for their continued support as QMX Gold moves towards closing the financing of the Snow Lake Project. It confirms that they have continued confidence in the project and they want to ensure that it moves past the milestone of securing a full financing arrangement."
Technical programs and information included in this release have been supervised, compiled, reviewed and approved by David Rigg, P.Geo., the Chairman of the Company and a Qualified Person as defined under NI 43-101.
About QMX Gold
QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. The Company is listed on the Toronto Stock Exchange ("TSX") and effective July 5, 2012, will trade under the symbol "QMX", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "QMXGF". QMX Gold continues to be a dynamic and aggressive mining company operating in Canada's richest mining regions: Val-d'Or, Quebec, and Snow Lake, Manitoba. QMX Gold continues to operate in the mineral rich Val-d'Or area with production estimated at 18,500-20,500 ounces of gold per year. The Company has also begun to ramp-up pre-production activities at its property at the Snow Lake Mining Camp which has a Measured and Indicated Mineral Resources of over 720,000 oz gold and is expected to produce 80,000 ounces of gold per year as identified in the Technical Report of December 10, 2010 titled Snow Lake Mine Re-activation Project prepared by: Andre Roy (Eng.) Jamie Lavigne (P.Geo), David West (P.Eng), Ian Ward (P.Eng), Matthew Parfitt (P.Eng), Mark Bednarz (P.Geo).
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the impact of the extension of the bridge facility, the timing and amount of future production, and the future financial or operating performance of QMX and its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.