Toronto-and NYSE American-listed Fury Gold Mines on Wednesday announced that it would buy TSX-V-listed Quebec Precious Metals (QPM) in an all-share transaction that would consolidate more than 157 000 ha of gold and critical minerals exploration assets in Quebec. 

The deal would see Fury absorb all issued and outstanding QPM shares through a court-approved plan of arrangement under the Canada Business Corporations Act.

Under the terms of the agreement, QPM shareholders will receive 0.0741 Fury shares for each QPM share held. This exchange ratio implies a price of C$0.04 a QPM share, representing a 33% premium to QPM’s closing price on February 25. Following the deal’s completion, Fury shareholders will hold 95% of the combined company, while QPM shareholders will own the remaining 5%.

Fury CEO Tim Clark said the transaction represented an opportunity, as it effectively doubled the company’s land position in Quebec’s Eeyou Istchee territory. “This transaction is an exciting opportunity given it doubles Fury’s land package in the James Bay Region and unites complementary assets, teams, and investor bases which should ultimately increase shareholder value at both companies,” he stated.

QPM’s flagship Sakami project, a key asset in the transaction, has seen nearly 50 000 m of drilling, with gold mineralisation identified at the La Pointe and La Pointe Extension zones. Fury plans to advance Sakami’s targets to the drilling stage in 2025, following reinterpretation of geological and geophysical data paired with systematic geochemical sampling.

QPM CEO Normand Champigny said the combination provided QPM shareholders with enhanced exposure to a well-funded, experienced management team capable of accelerating exploration efforts. “By combining with Fury, QPM’s shareholders will benefit from the synergies and cost savings of leveraging the combined company’s excellent management team for funding and obtaining required permits to continue drilling at Sakami,” he said.

Beyond Sakami, QPM’s asset portfolio includes the Elmer East project, home to a 4.2 km gold and base metals trend where grab samples have returned results of up to 68.10 g/t gold, 7.99% zinc, and 7 660 ppm copper. Spodumene-bearing pegmatites have also been identified throughout the QPM land package, with a 2024 drilling campaign at the Ninaaskumuwin project intercepting spodumene-bearing pegmatites exceeding 20 m in width with vertical continuity of up to 150 m.

QPM also holds a 68% stake in the Kipawa heavy rare earths project, which has a historical 2013 reserve estimate of 19.8-million tonnes grading 0.411% total rare earth oxides. The project, located in south-western Quebec, is road-accessible and benefits from existing infrastructure.

The agreement includes deal protections, such as a non-solicitation covenant for QPM and a matching right for Fury in the event of a superior proposal. Either party may be required to pay a termination fee of C$200 000 under certain conditions.

The transaction remains subject to shareholder and regulatory approvals, including clearance from the TSX, NYSE American, and TSX-V, as well as court approval. QPM shareholders representing 17% of outstanding shares have already agreed to vote in favour of the deal. The transaction is expected to close in the second quarter of 2025.

Upon completion, Fury’s board and management will remain unchanged, with Champigny appointed as a strategic adviser to Fury and its representative for the Kipawa project. Fury will continue to trade on the TSX and NYSE American under its existing name and ticker symbol.