Q Precious Battery Metals (CSE: QMET, WKN: A40QEV) has completed the acquisition of the Matane hydrogen project. This was done in accordance with an amended and restated acquisition agreement. The capital required for the acquisition and subsequent work is to be raised through a multi-stage capital increase. Its first tranche achieved gross proceeds of 536,555.03 Canadian Dollars (CAD) and was also successfully completed.
As part of the private placement, tax-advantaged flow-through shares and regular common shares were issued. The latter were issued at a unit price of 0.075 CAD, while the flow-through shares were issued to Canadian investors at a unit price of 0.09 CAD due to the tax benefit included in them. For the first tranche, both share classes resulted in total proceeds of 536,555.03 CAD.
Along with the common shares, the subscribing investors also acquired the right to purchase an additional QMET common share at a price of 0.10 CAD over a two-year period. The issued shares are subject to a hold period of four months and one day, and QMET paid a commission of 22,875 CAD to the brokers and additionally issued 85,000 broker options to them. These can also be exercised within the next two years at a unit price of 0.10 CAD.
Matane Acquisition Successfully Completed
The acquisition agreement for the Matane hydrogen project was recently revised and restated. Its terms stipulate that Q Precious Battery Metals will make a payment of 25,000 CAD to Zadkiel Holdings Inc. and issue an additional 6,000,000 common shares to the sellers in exchange for the Matane hydrogen project.
Furthermore, the company granted the original owners a royalty of 1.2% on future revenues from the sale of hydrogen or other minerals. However, QMET has the option to acquire half of this royalty for a payment of 1,200,000 CAD.
In accordance with the terms of the strategic cooperation agreement with Quebec Innovative Materials Corp. (QIMC), Q Precious Battery Metals has issued 4,000,000 common shares to QIMC and granted QIMC a royalty of 0.80% on revenues from the sale of hydrogen or other minerals under the Matane hydrogen project. However, QMET also has the option here to buy back half of the QIMC royalty for a payment of 800,000 CAD.
The Potential for Natural Hydrogen is Significant
For Q Precious Battery Metals, the acquisition of the Matane hydrogen project represents a great opportunity, as Matane is an exploration area that is receiving significant geological interest. The project is located in a transition zone between the Cambrian-Ordovician and Silurian-Devonian rock formations. The property extends over about 80 claims, stretching for 26 kilometers along the South Schicksock fault zone. They represent a well-defined structure with strong indications of natural hydrogen formation.
The unique geological composition of the Matane region, characterized by basaltic and peridotitic parent rocks, tectonized zones, and deep fault systems, offers an exceptional opportunity to generate hydrogen through oxidative hydrolysis and radiolytic reactions. The presence of porous and permeable sedimentary formations also increases the potential for hydrogen accumulation.
