Goldcorp to buy $3.7m stake in newly formed explorer

Quebec Precious Metals will hold a large land position and significant holdings in the highly prospective Eeyou Istchee James Bay region, Quebec, near Goldcorp’s Éléonore mine (pictured) | Image courtesy of Osisko Gold Royalties

Vancouver’s GoldCorp (TSX:G)(NYSE:GG) is investing $3.7 million to acquire a 14% interest in a newly formed gold exploration company born April 26 from the merger of Matamec, Canada Strategic Metals and Sphinx Resources.

The new explorer, named Quebec Precious Metals Corp. (QPM), will focus on the James Bay area, bordering the provinces of Quebec and Ontario, where it will own three projects until now property of Sphinx.

The merger makes of QPM a well-capitalized company with a large land position and significant holdings in the highly prospective Eeyou Istchee James Bay region, Quebec, near Goldcorp’s Éléonore mine, the parties said in a statement.

Goldcorp, the world's third largest bullion producer by market value, is expected to provide technical expertise and knowledge of the region, which holds high quality early stage exploration gold targets.

The deal provides Canada Strategic and Matamec shareholders with premiums of 41% and 32% respectively to the average price of their shares prior to the announcement.

“QPM, with quality gold exploration assets and a key shareholder, will be in a good position to attract additional growth opportunities,” the companies said.

Quebec Precious Metals’ headquarters will be in Montreal.

Mining.com