Mining Closes $15 Million Bought Deal Private Placement
GoldQuest Mining Corp. (the �Company�) (TSX
VENTURE: GQC) today announced the closing of the bought deal
private placement previously announced on July 31, 2012. Dundee Securities Ltd.
(the "Lead Underwriter"), on behalf of a syndicate of Underwriters
including Stifel Nicolaus
Canada Inc., Clarus Securities Inc., GMP Securities
L.P., and Raymond James Ltd. (the "Underwriters"), sold 12,000,000
common shares (the "Shares") at a price per Share of $1.25 for total
gross proceeds of $15,000,000 (the "Offering"). As part of the
Offering, the Underwriters exercised their option (the "Option") to
purchase an additional 4,000,000 Shares of the Offering.
In connection with the Offering, the Underwriters received a cash commission
equal to 6.0% of the gross proceeds raised under the Offering (inclusive of the
Option) and that number of non-transferable broker warrants (�Broker Warrants�)
as is equal to 6.0% of the number of Offered Securities sold (inclusive of the
Option). Each Broker Warrant will be exercisable into one Share of the Company,
for a period of 24 months from the Closing Date at a price of $1.25 per Share.
The securities issued pursuant to the Offering are subject to a hold period
expiring on December 22, 2012.
The net proceeds will be used to advance the exploration and development of the
Company�s gold assets in the Dominican Republic and for general corporate
The securities offered have
not been, and will not be, registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or for the
account or benefit of, United States persons absent registration or any
applicable exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy securities
in the United States, nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
GoldQuest is a Canadian based mineral exploration
company with projects in the Dominican Republic traded on the TSX-V under the
symbol GQC.V and in Frankfurt/Berlin with symbol M1W, with 139,975,267 shares
outstanding (153,048,601 on a fully diluted basis).
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact, that address events or developments that GoldQuest expects to occur, are forward- looking
Forward looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes",
"intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or
"should" occur. Although GoldQuest believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in
forward-looking statements. Factors that could cause the actual results to
differ materially from those in forward-looking statements include market
prices, exploitation and exploration success, continued availability of capital
and financing and general economic, market or business conditions. Investors
are cautioned that any such statements are
not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and opinions of GoldQuest's management on the date the statements are made.
GoldQuest undertakes no obligation to update these
forward-looking statements in the event that management's beliefs, estimates or
opinions, or other factors, should change, except as required by law.