Northquest Ltd. Announces Closing of Private Placement
July 26 2012 - 8:30AM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE U.S./ TORONTO, July 26, 2012 /CNW/ -
Northquest Ltd. ("Northquest") is pleased to announce that it has
closed it previously announced non-brokered private placement (the
"Offering") pursuant to which Northquest has issued an aggregate of
(i) 2,642,500 units ("Units") at a price of $0.20 per Unit; and
(ii) 2,360,000 "flow-through" units ("FT Units") at a price of
$0.25 per FT Unit, to raise aggregate gross proceeds of
$1,118,500. Each Unit consists of one common share of
Northquest and one-half of one share purchase warrant (each whole
such share purchase warrant, a "Warrant"). Each FT Unit
consists of one "flow through" common share of Northquest and
one-half of one Warrant. Each Warrant entitles the holder
thereof to acquire one additional common share of Northquest (which
shall not be a "flow through share") at an exercise price of $0.50
per share for a period of 24 months, provided that if, at any time
after the date which is four months and one day following closing,
the closing price of the common shares of Northquest on the
principal market on which such shares trade is equal to or exceeds
$1.00 for 20 consecutive trading days, Northquest may accelerate
the expiry date of the Warrants, in which event the Warrants will
expire upon the date (the "Accelerated Expiry Date") which is 30
days following the dissemination of a press release by Northquest
announcing the Accelerated Expiry Date. Insiders of
Northquest purchased an aggregate of 125,000 Units in the Offering
to raise aggregate gross proceeds of $25,000. In connection with
the Offering, Northquest paid aggregate finder's fees of up to
$47,250 to certain qualified registrants assisting in the Offering,
and issued broker warrants to such finders entitling the holders to
acquire an aggregate of up to 252,000 Units of Northquest at a
price of $0.20 per Unit, for a period of two years. The Offering
remains subject to the final approval of the TSX Venture
Exchange. All securities issued and issuable in connection
with the Offering are subject to a statutory hold period expiring
on November 26, 2012. 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. 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 the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations,
dependence upon regulatory approvals, and the availability of
financing. 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.
Northquest Ltd. CONTACT: Jon North, President and Chief Executive
Officer (416) 786-6348
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