Goldquest closes $8.7M second tranche of placement

Executive Summary

• Goldquest Mining Corp. has closed the second tranche of its non-brokered private placement, raising approximately C$8.7 million.
• The company has now issued a total of 31,966,201 units across two tranches, raising gross proceeds of approximately $40 million.
• Proceeds are designated for early development activities at the Romero project, expansion of greenfield exploration drilling, and general corporate purposes.

Key Details

• Second Tranche Details:
  • Issued 7,172,813 units.
  • Price: $1.21 per unit.
  • Gross Proceeds: Approximately $8.7 million.
• Unit Structure:
  • Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Exercise Price: $1.80 per common share.
  • Warrant Term: 24 months from the applicable closing date.
• Cumulative Financing Status:
  • Total units issued to date: 31,966,201 units.
  • Total gross proceeds to date: Approximately $40 million.
• Finder’s Fees:
  • Paid a cash finder's fee of $305,579.45 to Paradigm Capital Inc. (an arm's-length party) in connection with the second tranche.
• Regulatory/Insider Details:
  • Insiders acquired an aggregate of 150,000 units ($181,500) under the second tranche.
  • All shares and warrants are subject to a four-month statutory hold period under Canadian securities laws.
  • The company is relying on exemptions from formal valuation and minority shareholder approval requirements of MI 61-101.
• Future Expectations:
  • The company expects to close the third and final tranche of the private placement (up to $3,320,896) early next week.
• Use of Proceeds:
  • Early development activities at the Romero project.
  • Expansion of greenfield exploration drilling.
  • General corporate purposes.

Notable Quotes

• None provided in the text.