Fury Gold Mines (TSE: FURY) (NYSE: FURY) has agreed to a CAD$4.1 million pricetag to acquire Quebec Precious Metals (CVE: QPM) and expand its exploration options in the James Bay region of Quebec.
Fury said in a statement on Wednesdays that QPM shareholders would get 0.0741 Fury share for each QPM share held. The implication is a price of CAD$0.04 per QPM share and a 33 per cent premium based on Tuesday’s closing stock prices. The companies anticipate the transaction to close by the end of April.
The acquisition expands Fury’s northern Quebec gold and critical minerals exploration portfolio to more than 1,570 sq. km. The company already owns the nearby Éléonore South project, and QPM’s 709 sq. km land package, primarily within the emerging James Bay gold camp, will add to its holdings.
The acquisition also includes Sakami, a road-accessible project with a 23-km-long gold-bearing structural corridor.
The deal doubles Fury’s land package in the Eeyou Istchee territory of Quebec’s James Bay region. Furthermore, it unites complementary assets, teams, and investor bases to enhance shareholder value for both companies. He added that merging QPM’s gold and critical minerals exploration projects with Fury’s assets and strong balance sheet will improve cost efficiency and increase the potential for new discoveries.
QPM shares surged 17 per cent to CAD$0.035 in late morning trading Wednesday in Toronto, while Fury’s stock remained unchanged at CAD$0.53, giving the company a market capitalization of about CAD$80 million.
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QPM shareholders will vote in the spring
Fury plans to rapidly advance targets at Sakami to the drilling stage this year after reinterpreting the geology and geophysics and conducting systematic geochemical sampling.
Once the transaction is complete, QPM CEO Normand Champigny will join Fury as a strategic adviser. He will also serve as the company’s representative for Kipawa, a rare earth elements project located east of Temiscaming. QPM owns 68 per cent of Kipawa, while Investissement Québec, the provincial government’s investment arm, holds the remaining 32 per cent.
QPM shareholders will vote at a special meeting this spring, requiring approval from two-thirds of the votes cast. Officers, directors, and key shareholders, who control 17 per cent of QPM’s shares, have already agreed to support the transaction.
If a rival bid for QPM emerges, Fury has the right to match any superior proposal, according to the statement.
Once the deal is complete, existing Fury shareholders will own about 95 per cent of the company. QPM shareholders will hold the remaining 5 per cent.
Fury Gold Mines presently owns a diverse portfolio of exploration projects in Canada, focusing on gold and critical minerals. Its flagship asset is the Eau Claire project in Quebec. This hosts high-grade gold resources within the Eeyou Istchee James Bay region.
Meanwhile, in Nunavut, the company owns the Committee Bay project, a 270-km-long greenstone belt with significant gold potential. Additionally, Fury has a stake in Dolly Varden Silver (CVE: DV), which operates in British Columbia’s Golden Triangle.
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