QMX Gold Corp. is planning a nonbrokered private placement to raise gross proceeds of up to C$6.0 million, comprising 45.0 million common shares and 15.0 million flow-through shares priced at 10 cents apiece.
The company will use the proceeds to resume exploration, for general corporate purposes and to settle debt, it said Oct. 11. QMX Gold entered a debt settlement agreement with its Quebec-based debenture holders on C$5.4 million of indebtedness for C$539,995 and 10,799,899 common shares.
QMX Gold appointed Brad Humphrey as president, CEO and as a director. Humphrey previously worked for Morgan Stanley as an executive director and North American precious metals analyst.
Stephane Amireault was also appointed to the company's board, while David Rigg will step down from the board but will continue with the company as senior vice president of exploration and as a strategic adviser.
In addition, the company's board is proposing a name change to Quebec Soleil to better reflect its property position and renewed focus on the Val d'Or mining camp.
QMX Gold is resuming exploration at its 217-square-kilometer land package in Quebec's Val d'Or mining camp. The company suspended production and development at its Lac Herbin gold mine and completed winterization of the Aurbel gold mill on the property.
The first phase of diamond drilling and geophysics, focused on priority targets defined along the western side of the company's properties, is expected to be completed before the end of the year.