Q2 Metals Announces Closing of C$26 Million Private Placement of Flow-Through Shares

Core Viewpoint - Q2 Metals Corp. has successfully closed an upsized private placement of 26 million flow-through shares, raising total gross proceeds of $26 million to fund Canadian exploration expenses related to its mineral projects in Québec [1][3]. Group 1: Offering Details - The private placement consisted of 26,000,000 common shares sold at a price of $1.00 per share, including the full exercise of the Agent's option for an additional $5 million [1]. - The offering was conducted on a best efforts basis by Canaccord Genuity Corp. as the sole agent and bookrunner [2]. - The offering included 25,000,000 LIFE FT Shares and 1,000,000 Non-LIFE FT Shares, utilizing various prospectus exemptions [2]. Group 2: Use of Proceeds - The gross proceeds from the sale of the FT Shares will be used to incur eligible "Canadian exploration expenses" related to the Company's mineral projects in Québec, with a commitment to renounce these expenditures to subscribers by December 31, 2025 [3]. Group 3: Agent Compensation - As compensation for its services, the Agent received a cash commission of $1.3 million and 1.3 million non-transferable broker warrants, allowing the purchase of common shares at $0.90 each for three years [4]. Group 4: Regulatory and Compliance - The offering is subject to final approval from the TSX Venture Exchange, with specific hold periods for the LIFE FT Shares and Non-LIFE FT Shares under Canadian securities laws [5]. Group 5: Company Overview - Q2 Metals Corp. is focused on the Cisco Lithium Project in Québec, which spans 41,253 hectares and has significant potential for lithium mineralization [7][8]. - The Cisco Project has an initial exploration target estimating between 215 to 329 million tonnes of lithium mineralization at grades of 1.0 to 1.38% Li2O [8]. - Ongoing drill testing indicates potential for significant expansion at the Cisco Mineralized Zone, with results expected in Q3 2025 [9].