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Chairman’s Message
Summer/Fall 2024
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to update you on recent corporate activities and the Business Plan for MetalQuest Mining. The directors and management of MQM have been searching for a major acquisition that would adhere to management’s objective of building a Strategic Metals Company. We are extremely pleased with the 100% acquisition of the Lac Otelnuk Iron Ore Project. Lac Otelnuk is one of North America’s largest undeveloped Iron ore projects in Quebec’s Labrador Trough. In May, we disseminated a press release summarizing the work done to date on the Lac Otelnuk Project which represents approximately $150 million of previous expenditures and includes historic NI 43-101 resource calculations and a historic 2015 Feasibility Study. Our May press release outlines the project’s complete history and development story to date along with outlining our go-forward plan. The following bullet points are related to our restructuring plan, our new acquisition and our plan to move the Company forward.
- El Nino Ventures Inc. changed its name to MetalQuest Mining Inc. in December 2022.
- The Company consolidated on a 2.5-to-1 basis and currently has 26,914,788 common shares issued and outstanding.
- In the last quarter of 2022, the Company acquired 100% one of the largest undeveloped Iron ore projects in North America in Quebec’s Labrador Trough.
- In February 2023, the Quebec government transferred the Lac Otelnuk claims from the vendor to MetalQuest Mining.
- The Company has hired Watts, Griffits and McOuat Limited Toronto based geological and mining consultants who were responsible for documenting the historical resource calculations and helping to complete the bankable feasibility study on the project as one of our technical consultants for the Lac Otelnuk Project.
- In May 2023, the Company hired a Quebec based First Nations Consulting Company whose objective is to work with the Company to sign MOU agreements with Quebec based First Nations that are impacted by the Lac Otelnuk Project.
- The Company has completed research to build an inhouse Iron Ore Database with the objective of using it to find an option joint venture partner to help further develop the Lac Otelnuk Iron Ore Project.
- In February/April 2023, the Company upgraded its listing in the U.S. to the OTCQB® Venture Market under the trading symbol “MQMIF”.
- In early April 2023, the Company launched a new website: www.metalquestmining.com.
- The Company has sold its 28.2% interest in an advanced stage Murray Brook zinc-polymetallic project in the Bathurst Mining Camp, New Brunswick in Februrary 2024. The Company currently owns 2.5 million shares and warrants of Canadian Copper Inc along with two royalties totalling to 1% of the Murray Brook Project.
- In late October, WGM provided MQM with an overview of potential rail links which may be used to ship ore to nearby shipping ports. Lac Otelnuk benefits from being situated in the Labrador Trough, a region which exports the most iron ore in North America.
- On December 12th, MQM signed a Exploration and Pre-Development Agreement with the Naskapi Nation of Kawawachikamach to continue to promote a mutually respectful relationship with First Nations concerning MQM’s exploration programs on its claims within the Lac Otelnuk Iron Ore Project. The Naskapi Nation holds inherent Aboriginal rights and treaty rights to and over certain territory within the Company’s Project and Naskapi exercises those rights and asserts certain rights and claims in respect of surface and subsurface rights. We see this as a major milestone for the Company and for the development of the Lac Otelnuk Project.
- The Company continues to review new strategic metals assets with the objective of adding additional projects to its portfolio.
The Company is pursuing the following plans to enhance the Lac Otelnuk Iron Ore Project:
- Complete project due diligence and update technical databases.
- Continue to work with the Naskapi First Nation in regards to December 12, 2023 Agreement
- Continue our dedication to protecting the environment.
- Contact Quebec government agencies and officials regarding potential grants and other synergies.
- Implement new and efficient exploration technologies for discoveries and develop new targets to convert Historic Resources into Current Resources and Reserves.
- Continue to build our in-house Iron ore database consisting of iron ore producers, royalty companies, end-users, automobile companies, private equities, and mine finance companies.
- Introduce the project to potential Option/JV Partners with the objective of signing a project finance agreement.
The main concepts of a Project finance agreement would be as follows
- Update the Resource Estimate, if necessary, all drilling is complete at this point.
- Update the Feasibility Study with full engineering and construction cost updates.
- Complete Project permitting.
- Arrange production financing.
- Seek to supply European and North American markets with feedstock to reduce shipping costs.
- Study alternative product delivery methods such as rail or Northern ports to materially reduce CAPEX.
- Study methods of OPEX reduction via cost saving initiatives or development subsidies by the Quebec government for Northern Development, carbon reduction or other programs.
- Seek detailed tax advice to reduce or eliminate taxes on the project which will materially improve the economics.
Commentary
The Lac Otelnuk Iron Ore Project is one of the most advanced projects we have been able to acquire in our many years in the mining industry. To date, the development of this project has revealed an established historic multi-billion-ton resource upon which a feasibility study was completed in 2015. The project is paid for and there are no mandatory property payments, exploration expenditures, project expenditures, and/or pre-royalty payments. Lac Otelnuk Project has multi million dollars in assessment credits which will allow it to remain in good standing for years to come. The only obligation of the company to the previous owner is a 2.5% royalty on production that can be bought down to 0.7%. We are very pleased with the results of our recent restructuring of our company and the acquisition of a world class mineral asset and we look forward to our continued development of this new project.
Shareholders and investors are invited to visit the MetalQuest Mining website at www.metalquestmining.com where they can subscribe to our email list to receive updates on the Company and review the Company, its projects and its corporate activities. Any questions or comments can be directed to my email at Hbarr@mqmining.com
On behalf of the Board of Directors, we thank you for your ongoing support.
Yours sincerely,
Harry Barr
Chairman & CEO