Junex enters into a C$14M partnership for the development of Galt
August 04, 2017
14.00 Million CAD
On August 4, 2017, Junex Inc. (the "Company" or "Junex") announced the signing of a partnership agreement with Ressources Québec Inc. ("Ressources Québec"), acting as mandatary for the Government of Québec, and Gestion Bernard Lemaire Inc. ("Gestion Bernard Lemaire"), which will lead to investments estimated at C$14 million for the Galt oil and gas project on the Gaspé Peninsula (the "Galt Oil Project").
Under this new partnership, Ressources Québec will invest C$8.4 million, representing approximately 60% of the anticipated expenditures for the C$14 million exploration campaign. In return, Ressources Québec will acquire from Junex an undivided interest of 17.13% in the joint properties comprising the Galt Oil Project. Junex will retain an interest of 52.87% in the Galt Oil Project and will invest 10% of the anticipated expenditures for the exploration campaign (C$1.4 million). Gestion Bernard Lemaire will maintain its 30% interest in the Galt Oil Project.
The partnership agreement is significant because it enables Junex to focus on the long term development of the Galt Oil Project, one of the largest exploration projects in Quebec. Junex will remain the operator of the Galt Oil Project and will act in this capacity in the context of the exploration campaign that will commence in the coming weeks with the drilling of the Galt No. 6 horizontal well.
McCarthy Tétrault LLP advised Junex with a team led by Pierre Boivin that included Charles-Antoine Soulière, Maxime Damphousse, and Martin Thiboutot.