VANCOUVER, BC--(Marketwired - March 06, 2017) - GoldQuest Mining Corp. (TSX VENTURE: GQC) (
In connection with the private placement, Agnico and GoldQuest will enter into an investor rights agreement ("Investor Rights Agreement") which will grant Agnico the right, at its election, to nominate one person to the Company's Board of Directors (and in the case of an increase in the size of the Board of Directors to 10 or more directors, two persons) and also to maintain its interest in GoldQuest through participation in future equity financings of the Company. These rights may only be exercised by Agnico if it owns at least a 10% interest in the Company (calculated in accordance with the Investor Rights Agreement). Additionally, the Investor Rights Agreement will prohibit Agnico from taking certain actions, including acquiring more than 19.99% of the issued and outstanding common shares of GoldQuest for a period of two years, subject to certain exceptions.
Bill Fisher, Executive Chairman of GoldQuest, commented, "We are pleased to welcome Agnico as a strategic shareholder. Agnico is a world-class mining company and a leader in corporate social responsibility. Agnico's investment represents a strong endorsement of our efforts in the Dominican Republic and recognizes the exploration and development potential of our company. We look forward to the continued positive development of our Romero Project with the ongoing participation of local communities, municipalities and government departments. The approximately C$23 million investment by Agnico places us in a strong financial position to advance both our exploration program and the development of our Romero Project."
The proceeds from the private placement shall be primarily used for exploration and development at the Company's Dominican Republic properties and for general corporate and working capital purposes. All common shares issued in the private placement will be subject to a statutory four month hold period. Closing of the private placement is subject to certain conditions, including approval of the TSX Venture Exchange.
About GoldQuest
GoldQuest is a Canadian based mineral exploration company with projects in the Dominican Republic. The Company is permitting the Romero Gold Copper project, following the publication of the Pre Feasibility Study on November 11th 2016, as well as drilling the surrounding Tireo district. GoldQuest is traded on the TSX‐V under the symbol GQC and in Frankfurt/Berlin under the symbol M1W.
