GoldQuest Closes First Tranche of Private Placement

Executive Summary

• GoldQuest Mining Corp. closed the first tranche of its non‑brokered private placement, issuing 24,793,388 units at C$1.21 per unit for gross proceeds of approximately C$30 million.
• The financing includes common shares and half‑share purchase warrants (exercise price C$1.80) exercisable for 24 months; a cash finder's fee of ~C$1.5 million was paid to Milenio Partners, S.A.
• Proceeds are earmarked for early development at the Romero project, expansion of greenfield exploration drilling, and general corporate purposes.

Key Details

• Units Issued (First Tranche): 24,793,388 units @ C$1.21 per unit → C$29,999,999.48 gross proceeds.
• Maximum Offering Size: Up to 34,710,743 units for a total potential of ~C$42 million.
• Unit Composition: 1 common share + ½ warrant (each whole warrant allows purchase of one common share at C$1.80).
• Warrant Terms: Exercisable for 24 months from the closing date of the private placement.
• Finder’s Fee: Approximately C$1,499,999.97 paid to Milenio Partners, S.A. (arm’s‑length party).
• Statutory Hold Period: All common shares and warrants subject to a four‑month hold period under Canadian securities law.
• TSX‑V Approval: Private placement remains conditional upon final acceptance by the TSX Venture Exchange.
• Use of Proceeds:
• Early development activities at the Romero project.
• Expansion of greenfield exploration drilling programs.
• General corporate purposes.
• Insider Participation (Second Tranche): Insiders expected to acquire 150,000 units (~C$181,500), qualifying as a related‑party transaction under TSX‑V Policy 5.9 and MI 61‑101; exemptions applied because the amount does not exceed 25 % of market capitalization.

Notable Quotes

• Luis Santana, Chief Executive Officer: “The successful closing of this first tranche provides us with the capital needed to accelerate development at Romero and expand our exploration footprint, positioning GoldQuest for continued growth.”