SciQuest SQI

NEWS - Silver Quest Announces $5.5 Million Private

[JustAnotherGuy]

Silver Quest Announces $5.5 Million Private Placement
8/9/2010 4:43:06 PM - Market Wire

VANCOUVER, BRITISH COLUMBIA, Aug 09, 2010 (MARKETWIRE via COMTEX News Network) --

SilverQuest Resources Ltd. (TSX VENTURE: SQI) (the "Company") is pleased toannounce it has negotiated a best efforts private placement (the"Offering") with BayFront Capital Partners Ltd. as lead agent for up to$2.5 million in flow-through common shares (the "FT Shares") at a priceof
.75 per FT Share and up to $3 million in hard dollar units (the "HDUnits") at a price of
.65 per HD Unit for aggregate gross proceeds ofup to $5.5 million.

Each HD Unit will consist of one commonshare and one-half of one non-transferable common share purchase warrant("Warrant"). Each Warrant will entitle the holder to purchase oneadditional common share for two years from the date of closing at aprice of
.75 per share.

Upon the closing of the Offering, theAgent shall receive a commission paid in cash equal to 7% of theproceeds raised from the private placement. In addition, the Agent shallreceive broker warrants exercisable to acquire such number of HD Units(and having the same terms as the HD Units underlying the Offering) asis equal to 6% of the aggregate number of FT Shares and HD Units issuedpursuant to the private placement.

The funds raised from theissuance of the FT Shares will be used for general explorationexpenditures which will constitute qualified exploration expenditures asdefined in the Income Tax Act (Canada). Funds raised from the issuanceof HD Units will be used for general working capital purposes.

Closingof the private placement is anticipated to occur on or before August31, 2010 and is subject to the receipt of applicable regulatoryapprovals including approval of the TSX Venture Exchange. The securitiesissued will be subject to a standard four month hold period.

SILVER QUEST RESOURCES LTD.

Randy Turner, President

[greyman1]

i didn't think i'd get this at .60 but with warrants priced at at .75 for 2 years i;m willig t to bet they will sell it down past the .65 issue price and just keep the warrants. thank you cannacarp

[doohon]

huh? Sorry, I'm lost you do not like this PP i take it?? It seems like a fair PP to me? They need to raise capital for exploration and at .75 a share it seems like not a bad deal?? Please explain in detail if anyone agrees or disagrees....thanks!Cheers

[bluespruce]

this stock has been trading too strong last few weeks for the pp to affect the price.  They could have placed it lower (according to the tsx rules).  Bring on the drill results.

[poop616]

I agree.  More results to follow.  money to  continue.  bring it;.

[casey13]

The PP seems like a fair deal but to expect the stock price to stay at this level is not reasonable. The PP will add new supply. The current shares will trade at the PP price minus the current market value of the warrants until the overhead supply is gone. The only thing that may change this is more excellent drill results soon. We will all get another buying opportunity in the next few weeks.

[JustAnotherGuy]

I also think it's a fair PP, but just like last time, it came a bit sooner than I expected (I was expecting one in September). Maybe if they were able to hold it off a little longer, they could have negotiated one at a slightly higher price???Still, considering the fact that the stock has been trading between $.495-.075 in the last 10 trading days, it's not a bad price (By comparison, when

[zadman]

The question is, can we infer anything regarding pending drill results based on the timing of this PP?We are waiting "day to day" for initial drill results from Boulevard and as per Grandich, a hit in the Yukon is a game changer for SQI that would likely result in a sharp bump in valuation.  If the geos or management truly felt that that a hit was coming with these next