Silver Quest closes $300,000 financingSilver Quest closes $300,000 financing
2009-09-01 20:09 ET - News Release
Mr. Robert Weicker reports
SILVER QUEST RESOURCES LTD.: CLOSING OF NON-BROKERED PRIVATE PLACEMENT WITH THE MINERALFIELDS GROUP
Silver Quest Resources Ltd. closed, on Aug. 31, 2009, the non-brokered portion of a private placement financing previously announced (see Stockwatch, Aug. 10, 2009). The non-brokered portion consisted of three million flow-through (FT) units at 10.0 cents each to the MineralFields Group. Each FT unit comprises one flow-through common share and one-half of one non-flow-through common share purchase warrant, exercisable at a price of 15.0 cents per share until Aug. 31, 2010. Gross proceeds from the non-brokered offering were $300,000. The company anticipates closing on or about Sept. 16 on the other portion of the financing that was announced in Stockwatch on Aug. 10.
As consideration for the services of Limited Market Dealer Inc. acting as a finder for the non-brokered offering, the company has:
- Paid a fee in the amount of $18,000, equal to 6 per cent of the gross proceeds from the sale of the non-brokered FT units;
- Issued to the finder an option exercisable for the purchase of 240,000 units, each finder's unit consisting of one common share and one-half of one non-transferable share purchase warrant, each whole warrant exercisable for the purchase of one common share of Silver Quest at a price of 15 cents until Aug. 31, 2010.
The company has also agreed to pay the finder a due diligence fee in the amount of $6,300, equal to 2 per cent of the gross proceeds (inclusive of GST of 5 per cent) from the sale of the FT units under the non-brokered offering.
All the securities issued pursuant to the non-brokered offering, including the securities issued to the finder, are subject to a four-month hold period that will expire on Dec. 31, 2009.
The proceeds of the non-brokered offering will be used to finance the company's exploration project on the Capoose-Silver Trend property in central British Columbia and on the newly acquired properties (Boulevard, CC, TAK, VO and Sizzler claims) in the White Gold area of the Yukon.
About MineralFields, Pathway and First Canadian Securities
MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged superflow-through limited partnerships to investors throughout Canada, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at its website.
First Canadian Securities is active in leading resource financings (both flow-through and hard-dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining companies, and oil and gas exploration companies, to date, through First Canadian Securities.
We seek Safe Harbor.