Shares of Vancouver-based GoldQuest MiningCorp. (TSX: V.GQC, Stock Forum) jumped 39% to 16 cents Thursday morning, after the company announced that it has entered into a purchase agreement with Gold Fields Dominican Republic BVI to regain full ownership of its gold-focused portfolio in the Dominican Republic.
GoldQuest says it will acquire 100% ownership of the Dominican portfolio by issuing 8.6 million shares and granting a 1.25% royalty interest to Gold Fields in exchange for its 60% undivided interest in the projects. The company also notes that it will “aggressively review and explore newly prioritised gold targets”.
"We are delighted to regain full ownership and management control of this exploration portfolio. Based on our extensive geological knowledge of the region, we believe that the work completed under the Gold Fields joint venture provides GoldQuest the opportunity to significantly move the exploration portfolio forward and advance several projects to drill stage,” says Alistair Waddell, president & CEO of GoldQuest.
Gold Fields invested over C$6 million in the Dominican projects and completed in excess of 12,900 meters of exploration drilling on seven different projects.
On the company’s Bullboard, Supercycle said:
This is very good news. GQC has a lot of great projects and one of the best teams around. They have been handcuffed by the Goldfields deal for a while now. With that cleared away they can get back onto these properties themselves. Take the time to read the release and see the sort of numbers they have from some of these. Could be some good drill holes from this one once they gear up.
While ilafalot2 noted: “That's just one of the projects that they now own 100% of. And there's a whole bunch more. When capital markets return to normal this company is gonna rock. What a terrific deal--no cash required! to get it all back after GF spent $6M”
