GoldQuest Closes Second Tranche of Private Placement for Gross Proceeds of Approximately C$8.7 Million

Executive Summary

• GoldQuest Mining Corp. closed the second tranche of its non‑brokered private placement, issuing 7,172,813 units at C$1.21 per unit for approximately C$8.7 million in gross proceeds.
• Combined with the first tranche, total units issued to date equal 31,966,201 for roughly C$40 million of financing.
• Proceeds are earmarked for early development at the Romero project, expansion of greenfield exploration drilling, and general corporate purposes; a third “Final Tranche” of up to C$3.32 million is expected to close early next week.

Key Details

• Units Issued (Second Tranche): 7,172,813 units at C$1.21 per unit → ~C$8.7 M gross proceeds.
• Unit Composition: Each unit = 1 common share + ½ of a common‑share purchase warrant.
• Warrant Terms: Exercise price C$1.80 per share; exercisable for 24 months from closing date.
• Total Financing to Date: 31,966,201 units issued across both tranches → ~C$40 M gross proceeds.
• Finder’s Fee Paid: C$305,579.45 to Paradigm Capital Inc. (arm’s‑length party).
• Statutory Hold Period: All shares and warrants subject to a four‑month hold under Canadian securities law.
• Upcoming Final Tranche: Up to C$3,320,896 expected to close early next week.
• Use of Proceeds:
• Early development activities at the Romero project.
• Expansion of greenfield exploration drilling.
• General corporate purposes.
• Insider Participation: Insiders purchased 150,000 units (C$181,500); transaction qualifies for MI 61‑101 exemption as it is <25% of market cap.

Notable Quotes

(No direct quotes were provided in the release.)