Quest Rare Minerals Ltd

Quest Rare Minerals Ltd. is the subject of an active Division I proposal under the Bankruptcy and Insolvency Act in Quebec. Its statement of affairs as at January 3, 2018 shows assets of $3,208,000 against liabilities of $3,981,000, with estimated net realizable value listed as undetermined for most asset categories other than cash of $46,000. Liabilities comprise $438,000 secured to Hegemon Capital, Inc., $146,000 in director and officer loans, and $3,397,000 unsecured. Hegemon's conventional hypothec covers all of the Company's assets, though a Borden Ladner Gervais opinion confirming its validity did not extend to the mining properties; the amount owing in capital and interest at the loan's January 18, 2018 maturity was $462,751. The trustee also reports one employee claim of $2,000 ranking as a super-priority under BIA s. 81(3). Unsecured claims are estimated at $3,393,505 in the proposal scenarios and $3,545,367 in a bankruptcy, the latter reflecting reclassification of the directors' and officers' loans, whose hypothecs reach only sales tax credits receivable.