JOHANNESBURG (miningweekly.com) – Canada’s Alexis Minerals, which on Tuesday sealed a $45-million loan from Credit Suisse, said it will ask shareholders to vote in June to change the TSX-listed firm’s name to QMX Gold Corporation.
The company will also put a 20:1 share consolidation before shareholders to decide on.
Alexis, the owner of gold properties in Quebec’s Abitibi district and the Snow Lake district in Manitoba, said earlier in May it would sell its base metals properties in Rouyn-Noranda to privately owned Druk Capital Partners for $5-million and a 19% stake in the buyer.
The Toronto-listed company aims to produce 18 500 oz to 20 500 oz of gold this year at its Lac Herbin mine in Quebec, about double 2011’s production level.
A 2010 feasibility study forecast output of 80 000 oz to 90 000 oz from the Snow Lake property, where it aims to use the proceeds of the $45-million loan.
The debt bears interest at London interbank borrowing rate plus 5%, has a 4.5-year term, and includes a hedging agreement with Credit Suisse.
Alexis said the name change to QMX Gold was to reflect the transition to larger-scale production.
The ‘Q’ is for Quebec, ‘M’ for Manitoba and ‘X’ for exploration, the firm explained.