Silver Quest Announces $10 Million Private Placement
June 28 2011 - 8:10AM
PR Newswire (Canada)
VANCOUVER, June 28, 2011 /CNW/ -- NOT FOR DISTRIBUTION TO US
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, June 28, 2011 /CNW/ - Silver Quest Resources Ltd.
(SQI-TSX.V) (the "Company") is pleased to announce that it has
entered into an agreement with a syndicate led by Paradigm Capital
Inc. and including Stonecap Securities Inc. and Scotia Capital Inc.
(the "Agents") in respect of a private placement financing to be
undertaken on a best efforts basis for gross proceeds of up to
C$8,002,000 (the "Brokered Offering"). The Brokered Offering will
consist of up to 4,000,000 units (the "Units") at a price of C$1.00
per Unit and up to 3,480,000 common shares to be issued as
"flow-through" shares for the purposes of the Income Tax Act
(Canada) (the "Flow-Through Shares") at a price of C$1.15 per
Flow-Through Share. In addition, the Company will complete a
non-brokered private placement of Units for gross proceeds of up to
C$2,000,000 (the "Non-Brokered Offering). Each Unit will consist of
one common share ("Common Share") of the Company and one-half of
one common share purchase warrant (each whole warrant being a
"Warrant") of the Company. Each Warrant will entitle the holder
thereof to purchase one Common Share at C$1.30 and will be
exercisable for a period of 18 months after the closing date. The
Units and Flow-Through Shares are collectively referred to herein
as the "Offered Securities". The Company has granted the Agents an
option, exercisable up to 48 hours prior to the closing of the
Brokered Offering, to sell up to an additional number of Offered
Securities equal to 15% of the Offered Securities sold under the
Brokered Offering. Upon closing, the Agents shall receive a
commission paid in cash equal to 6% of the proceeds raised from the
Brokered Offering. In addition, the Agents shall receive
compensation options entitling the Agents, for a period of 18
months from the closing date, to acquire that number of Common
Shares of the Company that is equal to 6% of the number of Offered
Securities sold pursuant to the Brokered Offering (the
"Compensation Options"). Each Compensation Option will be
exercisable to purchase one Common Share of the Company at a price
of C$1.15. The Company will also pay a finder's fee to an arm's
length third-party in respect of the Non-Brokered Offering.
Such finder's fee will be comprised of cash equal to 6% of the
proceeds raised from the Non-Brokered Offering and Compensation
Options equal to 6% of the number of Offered Securities sold
pursuant to the Non-Brokered Offering. The net proceeds from the
private placements will be used by the Company for exploration at
its Davidson, Capoose, 3Ts and Yukon properties and for general
corporate purposes. The gross proceeds received by the Company from
the subscribers for the issuance of the Flow-Through Shares will be
used, pursuant to the provisions in the Income Tax Act (Canada), to
incur Canadian Exploration Expenses which will be renounced in
favour of the subscribers for the taxation year ending December 31,
2011. Closing of the private placements is anticipated to occur on
or before July 19, 2011 and is subject to the receipt of applicable
regulatory approvals including approval of the TSX Venture
Exchange. The securities issued will be subject to a standard four
month hold period. SILVER QUEST RESOURCES LTD. "Randy Turner" Randy
Turner, President Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release. To view this news release in
HTML formatting, please use the following URL:
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Investor Relations at 604-687-3959 or a
href="mailto:info@silverquest.ca"info@silverquest.ca/a /p
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