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TORONTO, Oct. 21, 2014 /CNW/ - Northquest Ltd. (TSX-V:NQ)
("Northquest") is pleased to announce that it proposes to complete
a non-brokered private placement (the "Offering") pursuant to which
Northquest will issue up to 10,000,000 common shares ("Shares") at
a price of $0.12 per Share, to raise
aggregate gross proceeds of up to $1,200,000.
In addition, Nord Gold N.V.
("Nordgold") holds a pre-emptive right to purchase such number of
Shares in the Offering as would result in it maintaining its
proportionate shareholding in Northquest following the completion
of the Offering, on a fully-diluted basis. Nordgold currently
holds an aggregate of 12,777,777 Shares and an additional 6,388,889
convertible securities of Northquest, representing approximately
25.26% of all of the issued and outstanding Shares as of the date
hereof on a fully diluted basis. Northquest will increase the
size of the Offering proportionately in the event that Nordgold
opts to exercise this pre-emptive right, in whole or in part.
Accordingly, in the event that Nordgold opts to exercise such
pre-emptive right in full, the size of the Offering will be
increased to up to an aggregate of 13,615,400 Shares to raise
aggregate gross proceeds of up to $1,633,848.
Northquest may pay a finder's fee to certain eligible
registrants in connection with the Offering in an amount equal to
7% of the gross proceeds raised by such finders, and issue up to
such number of broker warrants to such finders as is equal to 7% of
the aggregate number of Shares sold pursuant to the Offering, each
such broker warrant being exercisable to acquire one Share at an
exercise price of $0.16 for a period
of two years.
The Offering remains subject to the approval of the TSX Venture
Exchange.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Forward Looking Statements – Certain information set forth in
this news release may contain forward-looking statements that
involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of
Northquest, including, but not limited to the impact of general
economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, dependence upon regulatory
approvals, and the availability of financing. Readers are cautioned
that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements.
SOURCE Northquest Ltd.