Financing closed
Dr. Jon North reports
NORTHQUEST LTD. CLOSES C$5 MILLION OFFERING
Northquest Ltd. has raised gross proceeds of $4,999,700 by way of a brokered private placement of 3,470,500 units and 3,658,500 flow-through units at a price of 65 cents per unit and 75 cents per flow-through unit.
Each Flow-Through Unit is comprised of one flow-through share in the capital of the Company and one half of one common share purchase warrant. Each full Flow-Through Unit warrant entitles the holder to purchase one common share for an exercise price of C$1.00 for 18 months following completion of the Offering. Each Unit is comprised of one common share in the capital of the Company and one half of one common share purchase warrant. Each full Unit warrant entitles the holder to purchase one common share for an exercise price of C$0.80 for 18 months following completion of the Offering.
Clarus Securities Inc. and PowerOne Capital Markets Limited, as co-lead agents, together with Fraser Mackenzie Limited and Toll Cross Securities Inc. (collectively, the "Agents"), acted as agents for the Offering. The Agents received a cash commission of 7% of the gross proceeds raised under the Offering and that number of non-transferable broker warrants as is equal to 7% of the number of Units and Flow-Through Units sold pursuant to the Offering. Each broker warrant is exercisable into one Unit of the Company at a price of C$0.65 per Unit for a period of 18 months following completion of the Offering.
The securities issued pursuant to the Offering are subject to a hold period expiring on February 19, 2013. The proceeds raised from the sale of Flow-Through Units will be used by the Company to finance qualified Canadian exploration expenditures as defined in the Income Tax Act (Canada). The proceeds raised from the sale of the Units will be used by the Company for exploration and for general corporate purposes. Insiders of the Company subscribed for an aggregate of 76,923 Units in the Offering.
We seek Safe Harbor.