Canada-focused exploration company Fury Gold Mines has signed an agreement to acquire Quebec Precious Metals (QPM) in an all-share transaction.
Under the deal, Fury will acquire all issued and outstanding QPM shares through a court-approved plan of arrangement under the Canada Business Corporations Act.
The arrangement, set to be finalised by April 2025, will see QPM shareholders receive 0.0741 Fury shares for each QPM share they hold.
The Exchange Ratio values QPM shares at C$0.04 ($0.02), with a premium of 33% based on the closing prices of both companies on the day of the announcement.
Fury shareholders will own 95% and QPM shareholders 5% of the combined company on an undiluted basis.
The combined entity will benefit from increased scale and diversification, with the inclusion of several prospective gold and critical minerals assets in Quebec. It will consolidate more than 157,000 hectares (ha) of gold and critical minerals exploration land in the region.
Fury Gold CEO Tim Clark said: “This transaction is an exciting opportunity given it doubles Fury’s land package in the Eeyou Istchee territory in the James Bay Region of Quebec and unites complementary assets, teams and investor bases, which should ultimately increase shareholder value at both companies.
“Combining QPM’s gold and critical minerals portfolio of exploration projects with Fury’s projects and strong balance sheet will not only help improve cost efficiency but also add to the potential for new discoveries.”
QPM’s project portfolio enhances Fury’s project pipeline in an area where the company is highly engaged.
Fury plans to advance exploration at QPM’s Sakami project, where gold mineralisation has been identified across two zones, La Pointe and La Pointe Extension, by conducting nearly 50,000m of drilling.
QPM CEO and director Normand Champigny said: “By combining with Fury, QPM’s shareholders will benefit from the synergies and cost savings of leveraging the combined company’s excellent management team for funding and obtaining required permits to continue drilling at Sakami. We believe that the transaction with Fury offers for QPM shareholders a high potential for share price appreciation in the current gold market environment.”
Upon completion, Fury’s board will remain unchanged, with Normand Champigny joining as a strategic advisor and representative for the Kipawa project.
Earlier this week, Olympio Metals signed an agreement with Bullion Gold Resources to acquire up to an 80% stake in the Bousquet Gold Project in Quebec, Canada.
