Q Precious & Battery Metals Corp. Closes Matane Hydrogen Acquisition and closes 1st Tranche of Private Placement

Rhea-AI Summary

Q Precious & Battery Metals Corp (CSE: QMET, OTCPK: BTKRF) has announced two significant developments: the closure of its first private placement tranche and the completion of the Matane Hydrogen Project acquisition.

The company raised $536,555.03 through a combination of flow-through shares at $0.09 per share and non-flow-through units at $0.075, with each unit including one common share and a two-year warrant exercisable at $0.10. The company paid $22,875 in finder's fees and issued 85,000 finder's warrants.

For the Matane acquisition, the company:

• Paid $25,000 to Zadkiel Holdings
• Issued 6 million common shares to sellers
• Granted a 1.2% revenue royalty to sellers (50% buyable for $1.2M)
• Issued 4 million shares to Quebec Innovative Materials Corp
• Granted QIMC a 0.80% revenue royalty (50% buyable for $800,000)

The Matane Hydrogen Project covers 80 claims spanning 26 kilometers along the Schicksock-South fault zone, featuring potential for natural hydrogen formation through oxidative hydrolysis and radiolytic reactions.

Positive

• Secured $536,555.03 in new funding through private placement
• Completed strategic Matane Hydrogen Project acquisition
• Project spans significant 26km area with natural hydrogen potential
• Established collaboration with Quebec Innovative Materials Corp

Negative

• Dilution through issuance of 10 million new shares
• New royalty obligations of 2% on future revenues
• Additional $22,875 in finder's fees paid
• Project still in early exploration phase with no proven resources

Vancouver, British Columbia--(Newsfile Corp. - March 3, 2025) - Q Precious & Battery Metals Corp. (CSE: QMET) (FSE: 0NB) (OTCPK: BTKRF) (the "Company") announces they have closed the first tranche of their private placement and have closed its amended and restated acquisition agreement to acquire Matane Hydrogen Project.

Private Placement

The Company closed the first tranche of its previously announced private placement offering (see press release dated February 21, 2025) for gross proceeds of $536,555.03 issuing a combination of flow-through shares (the "FT Shares") at a price of $0.09 per FT share and non-flow through units ("NFT Units") at a price of $0.075 per NFT Unit subject to CSE approval.

Each NFT Unit consists of one non-flow-through common share and one warrant. Each warrant will entitle the holder to purchase a common share at a price of $0.10 per share for a two-year term (the "Warrant Term").

The Company paid finders fees of $22,875 and 85,000 finder's warrants (the "Finder's Warrants") to eligible finders. Each Finder's Warrant shall be exercisable at a price of $0.10 per share for a two year term.

The securities issued will be subject to a four month and one day hold from the date of issuance.

The proceeds from the Offerings will be for mineral and gas exploration activities and general working capital.

Matane Acquisition

The Company also announces that it has closed it previously announced amended and restated acquisition agreement (the "Acquisition Agreement") (see press releases dated January 30, 2025 and February 2, 2025). Under the terms of the Acquisition Agreement, the Company made a $25,000 payment to Zadkiel Holdings Inc. and issued 6,000,000 common shares to the beneficial owners (the "Sellers") in exchange for the Matane Hydrogen Project. In addition, the Company granted the Sellers a 1.2% royalty on revenues from the sale of any hydrogen or other minerals on the Matane Hydrogen Project (the "Sellers' Royalty"). 50% of the Sellers' Royalty may be purchased for $1,200,000. The Sellers' Royalty, and any proceeds from a buyout of the Seller's Royalty is split pro-rata between the Sellers based on their proportional interest in the Acquisition Agreement.

In addition, in accordance with the terms of the strategic collaboration agreement (the "Collaboration Agreement") with Quebec Innovative Materials Corp. ("QIMC") (see press release dated February 2, 2025) the Company has issued 4,000,000 common shares to QIMC and has granted QIMC a 0.80% royalty on revenues from the sale of any hydrogen or other minerals on the Matane Hydrogen Project (the "QIMC Royalty"). 50% of the QIMC Royalty may be purchased for $800,000.

The Sellers and QIMC are arms-length to the Company. The securities issued will be subject to a four month and one day hold from the date of issuance.

The Matane Hydrogen Project encompasses an exploration area of significant geological interest, positioned within a transition zone between Cambro-Ordovician and Siluro-Devonian rock formations. The property spans approximately 80 claims covering 26 kilometres along the Schicksock-South fault zone, a well-defined structure with strong indicators for natural hydrogen formation.

The Matane region's unique geological setting, characterized by basaltic and peridotitic source rocks, tectonized zones and deep fault systems, presents an exceptional opportunity for hydrogen generation through oxidative hydrolysis and radiolytic reactions. The presence of porous and permeable sedimentary formations further enhances the potential for hydrogen accumulation.

About Q Precious & Battery Metals Corp.

Q Precious & Battery Metals is a Canadian exploration company focused on critical minerals and energy transition resources. With a commitment to innovation and sustainability, QMET is pioneering efforts to explore and develop natural hydrogen and other strategic resources in Quebec and beyond.

On behalf of the Board of Directors

Richard Penn
CEO
(778) 384-8923
richard@qmetalscorp.com

Cautionary Statement

This news release contains certain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements relate to future events or future performance and include, but are not limited to, statements regarding the anticipated use of proceeds from the private placement, regulatory approvals, the Company's exploration and development plans for the Matane Hydrogen Project, future payments or share issuances under the Acquisition Agreement, and the potential exercise or repurchase of the Sellers' Royalty and the QIMC Royalty.Forward-looking statements are based on reasonable assumptions at the time they are made, including expectations regarding market conditions, regulatory approvals, the Company's ability to secure necessary permits, and its ability to execute exploration and development programs as planned. However, these statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to: delays in obtaining regulatory approvals, fluctuations in commodity prices, operational and technical challenges, capital market conditions, unforeseen geological factors, and risks associated with the hydrogen and mineral resource industries. There can be no assurance that the Company will complete its planned exploration and development activities as anticipated, that expected cost structures or funding sources will remain available, or that any of the royalties or other financial terms outlined in the agreements will be exercised or acquired under the anticipated conditions. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on forward-looking information. Additional information identifying risks and uncertainties that may affect the Company's financial and operational performance is available in its public filings with Canadian securities regulators at www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243014

FAQ

How much did Q Precious & Battery Metals (BTKRF) raise in their first private placement tranche?

The company raised $536,555.03 through a combination of flow-through shares at $0.09 and non-flow-through units at $0.075 per unit.

What are the key terms of the Matane Hydrogen Project acquisition by BTKRF?

The acquisition includes a $25,000 payment, 6 million shares to sellers, a 1.2% revenue royalty, plus 4 million shares and 0.80% royalty to QIMC.

What is the size and location of BTKRF's Matane Hydrogen Project?

The project spans 80 claims covering 26 kilometers along the Schicksock-South fault zone, positioned within Cambro-Ordovician and Siluro-Devonian rock formations.

What are the warrant terms in BTKRF's private placement?

Each warrant allows holders to purchase a common share at $0.10 for a two-year term, with 85,000 additional finder's warrants issued.

How can BTKRF buy back the royalties granted in the Matane acquisition?

The company can buy back 50% of the sellers' 1.2% royalty for $1.2M and 50% of QIMC's 0.80% royalty for $800,000.