Q2 Metals Company (QTWO-TSXV, quicksf(OTCQB, 458-FSE) raised $70 million in private placement of common shares and flow-through shares. The company said it will use the proceeds to advance the Cisco Lithium project, which is located in Eeyou Istchee, in the James Bay region of Quebec. The Cisco site is located just 6.5 kilometers from the Billy Diamond Expressway, providing access to rail infrastructure in the city of Matagami, 150 kilometers to the south, with links to deep sea ports.
The project hosts a pit captive resource of 270 million tons grading 1.36% Li20 at a cutoff grade of 0.4% Li20, and an additional underground captive resource of 24 million tons grading 1.34% Li20 inferred at a cutoff grade of 0.7% Li20.
Together, these estimates support a combined inferred resource of 295 million tonnes at grade 1.36% Li20, the company said. The deposit remains open throughout the strike period, with several additional high priority targets identified across the wider 41,253 hectare project area.
The company said the 2026 exploration program is ongoing, with a primary focus on drilling with the aim of developing the resource towards the specified classification. The program includes targeted expansion drilling and regional exploration designed to evaluate high-priority targets surrounding the Cisco deposit across the broader project area.
Meanwhile, the Company closed a previously announced private placement of 20.4 million ordinary shares at a price of $2.45 per share for gross proceeds of $50 million, an amount that includes the full exercise of the underwriters’ option (raising $10 million), and 5.5 million ordinary shares qualifying as flow-through shares within the meaning of the Income Tax Act (Canada) at $3.60 per flow-through share, resulting in gross proceeds of $20 million in excess.
On Tuesday, Q2 Metals shares fell 4.14%, or 13 cents, to $3.01. Shares are trading in a 52-week range of $3.28 and 43 cents.
The geological model supporting the inferred mineral resource estimate accounts for a single major body of pegmatite spodumene ranging in true thickness from more than 2.0 meters to more than 450 metres, extending along a strike length of 1.8 km, with several associated nearby structures, the company said.
An exploration target of 44 to 67 million tons of mineral material grading 0.88% to 1.35% Li20 has been set for the geological environment in excess of the current resource estimate. Assays from 75 drill holes, representing 33,343 meters up to drill hole CS25-076, were used to inform the resource estimate.
The 2026 exploration target is limited to the area immediately surrounding the deposit and does not include potential geology and targets identified by the Company outside the deposit area. The 2026 program is primarily focused on drilling towards a resource definition indicated for inclusion in the inaugural preliminary economic assessment, targeted for 2027.
