Northquest Ltd. - Pistol Bay Gold Project Expanded
June 18 2012 - 8:00AM
PR Newswire (Canada)
TORONTO, June 18, 2012 /CNW/ - Northquest Ltd. (TSXV-NQ) (FWB: N3Q)
("Northquest" or the "Company") is pleased to announce that four
mining claims (the "Subject Claims") have been added to the
contiguous claim block of the Pistol Bay Gold Project. The Subject
Claims were previously the subject of a Notice of Protest filed
with the Mining Recorder of Nunavut and were awarded to the
Optionor of the Subject Claims who has previously granted to
Northquest an option to earn an interest in the Subject Claims. As
previously announced on December 2, 2010, the Company is party to
an option agreement (the "Option Agreement") with a third party
optionor pursuant to which it has been granted its option to earn a
100% interest in three mining claims (the "Original Claims")
forming part of the project known as the Pistol Bay Project, in
Nunavut Territory, Canada. Pursuant to the Option Agreement, the
Company also acquired a supplemental option to acquire a 100%
interest in the four Subject Claims, provided that title to such
claims was subsequently awarded to the optionor upon resolution of
a Notice of Protest. The Mining Recorder's Office of Nunavut has
confirmed that the optionor has been awarded title to the claims.
As a result of this decision, the Company may now acquire a 100%
interest in the Subject Claims by initially issuing 500,000 common
shares and paying $50,000 to the optionor upon making a decision to
exercise the supplemental option. On the first anniversary of such
initial payment, the Company must pay $250,000 and on the second
anniversary of such initial payment, the Company must pay $500,000.
The payments for the supplemental option are optional and each of
the first and second anniversary payments can be paid in cash,
common shares, or any combination thereof at the Company's sole
discretion. In addition to the consideration for the option for the
Original Claims and the supplemental option, in the event that a
technical report discloses a Measured Mineral Resource of at least
1 million ounces of gold, on any property acquired through either
the option or supplemental option, the Company must pay $0.75 per
resource ounce of gold in increments of 1 million ounces. In
the event that a technical report discloses a Measured Mineral
Resource of over 5 million ounces of gold, the Company must pay
$1.50 per resource ounce of gold in increments of 1 million ounces.
About Northquest Northquest is a mineral exploration company
focused on the acquisition, exploration and development of
properties for the mining of gold and other minerals. Northquest
has 25,315,823 shares outstanding (38,345,035 on a fully diluted
basis). For further information please visit www.northquest.biz.
Forward-Looking Statements Certain information set forth in this
news release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of
Northquest, including, but not limited to, whether or not
Northquest opts to exercise the supplemental option to acquire any
interest in the Subject Claims, the impact of general economic
conditions, industry and political conditions, volatility of
commodity prices, risks associated with the uncertainty of
exploration results and estimates and that the resource potential
will be achieved on exploration projects, currency fluctuations,
and the uncertainty of obtaining additional financing and
exploration risk. Readers are cautioned that the assumptions
used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, undue reliance should not be placed on
forward-looking statements. NEITHER THE TSX VENTURE EXCHANGE NOR
ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE Northquest Ltd. CONTACT:
Dr. Jon NorthPresident and Chief Executive OfficerTel. (416)
306-0202Tanya MahadeoInvestor RelationsTel. (416) 306-0486
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