“`html
10/27/2025 – 03:15 AM
Vancouver, British Columbia – Questcorp Mining Inc. (QQQ:CSE; QQCMF:OTCQB; D910:FSE) has announced the successful closure of the initial tranche of its non-brokered private placement, injecting $2,100,050 into the company’s coffers. The move comes as the junior miner seeks to bolster its exploration efforts across its key North American properties.
Under the terms of the initial closing, Questcorp issued 14,000,334 units at a price of $0.15 per unit. Each unit comprises one common share and one-half of a share purchase warrant. The full warrants allow holders to acquire additional common shares at $0.20 until October 24, 2027. A notable clause includes an accelerated expiry stipulation: should Questcorp’s share price reach or exceed $0.50 for ten consecutive trading days, the warrants’ timeline will be compressed, potentially incentivizing early exercise and further capital inflow.
Questcorp plans to allocate the newly secured funds towards advancing exploration and drilling activities at the La Union Gold and Silver Project in Mexico, alongside commencing exploration at the North Island Copper Property in British Columbia, Canada. A portion of the capital will also be designated for general working capital requirements, a crucial aspect for sustaining ongoing operations and hedging against unforeseen expenses.
A segment of the issued units, equivalent to $2,000,000, falls under a unique sharing agreement with institutional investor Sorbie Bornholm LP. This agreement introduces a dynamic pricing mechanism, where Questcorp’s economic interest is evaluated over 24 monthly settlement tranches against a pre-defined benchmark price of $0.1949. The settlement price is calculated monthly, based on a volume-weighted average price (VWAP) over the twenty trading days leading up to each settlement date.
If the settlement price surpasses the benchmark, Questcorp stands to gain more than 100% of the respective monthly settlement, pro-rata. This upside participation offers exposure to potential market gains. Conversely, if the settlement price dips below the benchmark, Questcorp will receive less than 100% of the due monthly settlement on a pro-rata basis. However, the company clarified that a decline in the settlement price would not result in an increased number of units being issued to Sorbie, limiting dilution risks.
The units issued in this initial tranche were released under the “Listed Issuer Financing Exemption,” circumventing standard statutory hold periods, thereby providing immediate liquidity to investors. Questcorp has made available an offering document detailing the private placement on SEDAR+ and its company website for prospective investors seeking more information.
While no finders’ fees were paid out for this tranche, Sorbie Bornholm LP received a corporate finance fee of $130,000, settled through the issuance of 866,667 units priced at $0.15 each. This arrangement aligns Sorbie’s interests with the long-term performance of Questcorp.
The company anticipates a final tranche to the offering, targeting the issuance of up to an additional 9,333,000 units, which would potentially bring the total gross proceeds from the private placement to $3,500,000. These remaining units are expected to be offered under the Accredited Investor Exemption. Securities issued under this exemption will have a four-month-and-one-day resale restriction. Finder’s fees may be paid to eligible third parties for subscriber introductions in the closing tranche, contingent upon regulatory approval.
Questcorp Mining’s Strategic Outlook
Questcorp Mining Inc. specializes in acquiring and exploring mineral properties across North America, focusing on identifying and developing economically viable precious and base metal deposits. The company currently holds an option to acquire a 100% interest in the North Island Copper Property, encompassing 1,168.09 hectares on Vancouver Island. Additionally, Questcorp holds an option for a 100% undivided interest in the La Union Project, spanning 2,520.2 hectares in Sonora, Mexico, both of which are subject to royalty obligations.
The successful completion of the first tranche of this private placement offers Questcorp Mining increased financial flexibility in a capital-intensive sector. The innovative sharing agreement could provide additional upside, while the accelerated warrant expiry may trigger further capitalization in the intermediate term. While the possibility of further unit issuance always presents dilution risks for existing shareholders, the funds secured now offer runway for further exploration and project development.
