TORONTO, ONTARIO--(Marketwired - July 25, 2013) -
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Quest Rare Minerals Ltd. (TSX:QRM) (NYSE MKT:QRM) is pleased to announce that it has completed a fully-subscribed private placement by issuing 4,065,360 "flow-through" shares at a price of $0.55 per share, for gross proceeds to Quest of $2,235,948, and 1,012,000 "hard-dollar" units at a price of $0.50 per unit, for gross proceeds to Quest of $506,000. The total gross proceeds from the private placement are $2,741,948.
Each of the "hard-dollar" units is comprised of one common share and one-half of a common share purchase warrant. Each of the full warrants entitles its holder to acquire one additional common share of Quest at a price of $0.80 until January 25, 2015, 18 months from the closing date of the private placement. If at any time prior to the expiry date of the warrants, the volume weighted average price of Quest's common shares on the Toronto Stock Exchange exceeds $1.20 for a period of not less than 20 consecutive trading days, Quest may reduce the period during which the warrants may be exercised, such that the warrants will expire on the date which is 30 days after the date on which Quest sends a notice to warrant holders.
Quest will use the proceeds from the issuance of the "flow-through" shares for exploration on its properties in Québec, and will use the net proceeds from the issuance of the "hard-dollar" units for working capital. Purchasers of the "flow-through" shares will be entitled to claim a 100% deduction of the amount of their subscription for Canadian federal and Québec provincial income tax purposes, for the 2013 taxation year, and individual purchasers will be entitled to claim an additional 15% federal investment tax credit in respect of such expenditures. Individual purchasers of "flow-through" shares resident in Québec will be entitled to two additional deductions of 25% each.
Jones, Gable & Company Limited acted as lead agent for the private placement. In connection with the private placement, Quest granted compensation options to Jones, Gable and other selling agents, entitling them to acquire a maximum of 203,094 common shares at a price of $0.50 per share until January 25, 2015, 18 months from the closing date of the private placement.
The securities issued by Quest in the private placement are subject to a four-month "hold period" under applicable Canadian securities legislation, which expires on November 26, 2013.
Following the closing of the private placement, Quest has 67,237,044 issued and outstanding common shares.