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Questcorp Mining (OTCQB: QQCMF) finalized the initial tranche of a private placement, securing $2.1 million in gross proceeds. This financial maneuver, completed on October 24, 2025, involved the issuance of 14,000,334 units priced at $0.15 each. The structure of these units includes an intriguing element: each unit comprises one common share and a half warrant, with full warrants exercisable at $0.20 until October 24, 2027. An accelerated expiry clause is in place should the stock price reach $0.50 for ten consecutive trading days, adding a layer of potential upside for investors.
A significant portion of this placement, specifically $2 million worth of units, is governed by a Sharing Agreement with Sorbie Bornholm LP, highlighting a strategic partnership designed to optimize value extraction. These funds are secured in escrow, with settlements planned over 24 monthly tranches, each with a baseline value of $79,792, measured against a benchmark price of $0.1949. However, the actual monthly settlement is subject to variability based on a 20-day volume-weighted average price (VWAP), creating a dynamic financial arrangement where returns can exceed or fall below the baseline.
Positive Aspects:
- Gross proceeds of $2,100,050 from the first tranche provide immediate capital injection.
- Issuance of 14,000,334 units, each containing a share and warrant, offers potential shareholder value.
- Warrants are exercisable at $0.20 until Oct 24, 2027, indicating potential for future capital influx.
- A $2,000,000 portion secured in escrow under the Sharing Agreement provides a degree of financial stability.
- 24 monthly tranches of $79,792 baseline settlement offer predictable cash flow (subject to VWAP).
Potential Concerns:
- The issuance of 14,000,334 units may lead to immediate dilution of existing shareholder equity.
- Warrant exercise at $0.20, while positive for Questcorp’s treasury, could induce further dilution.
- Monthly settlement amounts are variable: less than the subscription price can be delivered if the VWAP falls below $0.1949.
- Settlement proceeds tied to the 20-day VWAP introduces uncertainty into the company’s cash flow projections.
11/10/2025 – 03:15 AM
Vancouver, British Columbia – November 10, 2025 – Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (“Questcorp”) announced the completion of the first tranche of its non-brokered private placement on October 24, 2025. The company issued 14,000,334 units at $0.15 per Unit, raising gross proceeds of $2,100,050. Each Unit consists of one common share and one-half of one share purchase warrant (“Warrant”). Each Warrant entitles the holder to acquire an additional common share at a price of $0.20 until October 24, 2027, subject to accelerated expiry if the closing price of the Shares is $0.50 or higher for ten consecutive trading days.
A portion of the Units issued, representing $2,000,000, are held pursuant to a sharing agreement with Sorbie Bornholm LP (“Sorbie”). Funds deposited under the Sharing Agreement are secured in escrow. The Sharing Agreement stipulates that Questcorp’s economic interest will be determined over 24 monthly settlement tranches, measured against a Benchmark Price. Unless adjusted, each monthly settlement tranche will total $79,792.
The mechanics involve a Settlement Price determined monthly based on a volume-weighted average price (VWAP) for twenty trading days prior to the settlement date. If the Settlement Price exceeds the benchmark price of $0.1949, Questcorp receives more than 100% of the monthly settlement due, pro-rata. There is no upper limit on the additional proceeds the company can receive. Conversely, if the Settlement Price falls below the $0.1949 benchmark, Questcorp receives less than 100% of the monthly settlement pro-rata. The number of Units issued to Sorbie remains constant regardless of the Settlement Price, but Questcorp’s realized revenue per unit will fluctuate. This structure introduces an element of market-linked performance into the financing.
Essentially, Questcorp is betting on its own stock performance to maximize the returns from this financing arrangement. The variable nature of the monthly settlements requires careful financial planning as it adds an element of unpredictability to the revenue stream. The potential for increased revenue when the Settlement Price surpasses the benchmark creates an incentive for management to enhance shareholder value.
Example Settlement Amounts Based on Varying Settlement Prices:
| Settlement Price | Monthly Settlement Amount |
| $0.2449 | $100,262 |
| $0.1949 (Benchmark Price) | $79,792 |
| $0.1449 | $59,322 |
For further details concerning the Offering, review the company’s news release issued on October 27, 2025.
About Questcorp Mining Inc.
Questcorp Mining Inc. focuses on acquiring and exploring mineral properties in North America, aiming to locate and develop economic precious and base metals properties. The Company holds an option to acquire a 100% interest in mineral claims totaling 1,168.09 hectares, the North Island Copper Property, on Vancouver Island, British Columbia. A royalty obligation applies to this acquisition. Questcorp also holds an option to acquire a 100% interest in mineral claims totaling 2,520.2 hectares, the La Union Project in Sonora, Mexico, also subject to a royalty obligation.
This news release includes forward-looking statements under applicable Canadian securities legislation, subject to risks, uncertainties, and other factors. These statements depend on estimates and assumptions which may be inaccurate. Such factors include business, economic, competitive, political and social uncertainties, uncertain capital markets, and potential delays in receiving board or regulatory approvals. The completion of the geophysical surveys are subject to risks, and actual results and future events could differ materially from those anticipated. Readers should not place undue reliance on forward-looking statements. The Company disclaims any obligation to update or revise such statements, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273791
FAQ
What did Questcorp (QQCMF) announce on October 24, 2025 about its private placement?
Questcorp issued 14,000,334 units at $0.15 per unit for $2,100,050 gross proceeds on October 24, 2025.
How are the units structured in Questcorp’s (QQCMF) offering and what are the warrant terms?
Each unit contains one common share and one-half warrant; each whole warrant is exercisable at $0.20 until Oct 24, 2027, subject to accelerated expiry.
What portion of Questcorp’s (QQCMF) private placement is under the Sharing Agreement with Sorbie?
$2,000,000 of the units issued in the first tranche are held pursuant to the Sharing Agreement with Sorbie Bornholm LP.
How will Questcorp (QQCMF) receive funds under the Sorbie Sharing Agreement and on what timeline?
Funds are settled from escrow in 24 monthly tranches, each baseline tranche totaling $79,792, measured against a benchmark price.
What benchmark and pricing method determine Questcorp’s (QQCMF) monthly settlements?
Monthly settlements use a 20‑day volume‑weighted average price (VWAP) compared to a Benchmark Price of $0.1949 to scale monthly amounts pro rata.
Could Questcorp (QQCMF) receive more or less than the subscription amount under monthly settlements?
Yes. If Settlement Price > $0.1949 the company receives more than the baseline, and if below it receives less; there is no upper limit on additional proceeds.
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