Quartz Mountain Purchases BC Mineral Claims

Rhea-AI Summary

Quartz Mountain Resources Ltd. has entered a mineral claims purchase agreement for nine claims near Houston, BC, for CAD$105,000 in cash and 1,000,000 shares, pending TSX Venture Exchange approval. The claims come with a 2.5% NSR, which can be reduced to 1% for $1.5 million. No work commitments are required, but exploration awaits future financing. Forward-looking statements include expectations for completing a private placement and potential regulatory acceptance. Investors are advised to review filings on www.sedar.com.

Positive

• Purchase of nine mineral claims indicates potential for future growth in resource exploration.
• No required work commitments allow financial flexibility for the company.
• Acquisition structure includes shares, which aligns stakeholder interests.

Negative

• The need for future financing may delay material exploration of the claims.
• The presence of a 2.5% NSR may impact future profitability unless reduced.

VANCOUVER, BC / ACCESSWIRE / June 10, 2021 / Quartz Mountain Resources Ltd. ("Quartz Mountain" or the "Company") (TSXV:QZM)(OTC PINK:QZMRF) announces that it has entered into a mineral claims purchase agreement to purchase nine mineral claims located near Houston, British Columbia for CAD$105,000 in cash and 1,000,000 shares in the capital of the Company, subject to TSX Venture Exchange approval. The claims are subject to a 2.5% NSR which can be bought-down to 1% for $1.5 million. There are no required work commitments for these claims as the transaction is not an option, however material exploration of this acquisition will need to await a financing which the Company will seek going forward.

For further details, contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

On behalf of the Board of Directors
Leonie Tomlinson
Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts are forward-looking statements. These statements include expectations about the likelihood of completing the private placement and share consolidation and the ability of the Company to secure regulatory acceptance for the private placement and share consolidation. Though the Company believes the expectations expressed in its forward-looking statements are based on reasonable assumptions, such statements are subject to future events and third party discretion such as regulatory personnel. For more information on the Company, and the risks and uncertainties connected with its business, investors should review the Company's home jurisdiction filings as www.sedar.com and its filings with the United States Securities and Exchange Commission.

SOURCE: Quartz Mountain Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/651217/Quartz-Mountain-Purchases-BC-Mineral-Claims

FAQ

What are the details of Quartz Mountain Resources' acquisition of mineral claims?

Quartz Mountain Resources is acquiring nine mineral claims near Houston, BC, for CAD$105,000 and 1,000,000 shares, pending approval.

What are the financial terms associated with the mineral claims purchase by QZMRF?

The purchase involves CAD$105,000 in cash and 1,000,000 shares, with a 2.5% NSR that can be reduced to 1% for $1.5 million.

How will the mineral claims acquisition affect Quartz Mountain's stock QZMRF?

The acquisition could impact QZMRF positively if financed and explored effectively, but delays due to financing may affect market perception.

When did Quartz Mountain announce the purchase of mineral claims?

Quartz Mountain announced the purchase of mineral claims on June 10, 2021.