VANCOUVER, BC--(Marketwired - March 08, 2017) - GoldQuest Mining Corp. (TSX VENTURE: GQC) (
In connection with the private placement, Agnico and GoldQuest entered into an investor rights agreement ("Investor Rights Agreement") which grants Agnico the right to maintain its interest in GoldQuest through participation in future equity financings of the Company and to, at its election, 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). 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). Agnico has not elected to exercise its director nomination right at this time. Additionally, the Investor Rights Agreement prohibits 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 that we have now closed the private placement with Agnico and look forward to their continued support of our company."
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 are subject to a statutory four month hold period expiring on July 9, 2017.
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.
