NEWS out !!!GlobeinvestorGOLD.com Company News Alert for Silver Quest Resources
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Silver Quest Closes Second Tranche of Private Placement for Gross Proceeds of C$2.495M
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 29, 2011) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Silver Quest Resources Ltd. (TSX VENTURE:SQI)
(the"Company") is pleased to announce the closing of the second and finaltranche of its brokered private placement financing (the "BrokeredOffering") originally announced on June 28, 2011 for gross proceeds ofC$2,495,000 from the sale of 2,495,000 units (the "Units") at a price ofC$1.00 per Unit.
Each Unit consisted of onecommon share of the Company and one-half of one common share purchasewarrant of the Company (each whole warrant being a "Warrant"). EachWarrant entitles the holder thereof to purchase one common share at aprice of C$1.30 per share until 18 months from the closing date.
The Brokered Offering was conducted by a syndicate of agents led by Paradigm Capital Inc. that also included
StonecapSecurities Inc. and Scotia Capital Inc. (collectively, the "Agents").The entire Brokered Offering consisting of 5,000,000 Units and 4,364,952flow-through shares at a price of C$1.15 per share, raised grossproceeds of $10,019,695. The Company also previously completed anon-brokered private placement of Units raising gross proceeds of $2.3million on July 20, 2011.
In connection withthe closing of the second tranche of the Brokered Offering, the Agentsreceived a cash commission equal to 6% of the gross proceeds from thesale of Units and options entitling the Agents to acquire 148,200 commonshares of the Company (the "Brokered Compensation Options"). EachBroker Compensation Option entitles the holder to purchase one commonshare at a price of C$1.15 per share, until 18 months from the closingdate.
The net proceeds from the privateplacement will be used by the Company for exploration at its BCproperties which may include the Davidson, Capoose and 3Ts andexploration at its Yukon properties, which may include ProspectorMountain, Rude Creek, Henderson and Boulevard as well as for generalcorporate purposes. The securities issued in the private placement aresubject to a four month hold period from the date of issue in accordancewith applicable Canadian securities laws.
Certaininsiders of the Company participated in the Offering. The Company hasdetermined that there are exemptions available from the variousrequirements of TSX Venture Policy 5.9 and Multilateral Instrument61-101 for the issuance of these securities. No new insiders werecreated, nor has any change of control occurred, as a result of theprivate placement.
Thisnews release does not constitute an offer to sell or a solicitation ofan offer to buy any of the securities in the United States. Thesecurities have not been and will not be registered under the UnitedStates Securities Act of 1933, as amended (the "U.S. Securities Act") orany state securities laws and may not be offered or sold within theUnited
States or to or for the account or benefit of a U.S. person asdefined under applicable securities laws unless registered under theU.S. Securities Act and applicable state securities laws or an exemptionfrom such registration is available.
SILVER QUEST RESOURCES LTD.
"Randy Turner"
Randy Turner, President
Thisrelease includes certain statements that may be deemed to be"forward-looking statements". All statements in this release, other thanstatements of historical facts, that address events or developmentsthat the Company expects to occur, including without limitation, the useof proceeds from the Brokered Offering, are forward looking statements.Forward looking statements are statements that are not historical factsand are generally, but not always, identified by the words "expects","plans", "could" or "should" occur. Although the Company believes theexpectations expressed in such forward looking statements are based onreasonable assumptions, such statements are not guarantees of futureperformance and actual results may differ materially from those inforward looking statements. Factors that may cause the actual results todiffer materially from those in forward-looking statements includesilver and gold prices, results of exploration and developmentactivities, regulatory changes, defects in title, availability ofmaterials and equipment, timeliness of government approvals, continuedavailability of capital and financing and general economic, market orbusiness conditions. The Company cautions the foregoing list ofimportant factors is not exhaustive. Investors and others who basethemselves on the Company's forward-looking statements should carefullyconsider the above factors as well as the uncertainties they representand the risk they entail. The Company believes that the expectationsreflected in those forward-looking statements are reasonable, but noassurance can be given that these expectations will prove to be correct.Please see the public filings of the Company at
www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT: Investor Relations
Silver Quest Resources Ltd.
604-687-3959
604-687-1448 (FAX)
info@silverquest.ca
www.silverquest.ca
Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as thatterm is defined in policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.