Business
GoldQuest Announces C$22,860,000 Strategic Investment by Agnico Eagle
VANCOUVER, BC--(Marketwired - March 06, 2017) - GoldQuest Mining Corp. (TSX VENTURE: GQC) (FRANKFURT: M1W) (BERLIN: M1W) ("GoldQuest" or the "Company") is pleas
About this update from Goldquest Mining Corp.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - March 06, 2017) - GoldQuest Mining Corp. (TSX VENTURE: GQC) (FRANKFURT: M1W) (BERLIN: M1W) (\"GoldQuest\" or the \"Company\") is pleased to announce that Agnico Eagle Mines Limited (\"Agnico\") has agreed to acquire, by way of non-brokered private placement, 38,100,000 common shares of GoldQuest at a price of C$0.60 per common share for a total investment of C$22,860,000. Upon closing of the private placement, Agnico will own approximately 15% of the issued and outstanding common shares of GoldQuest. In connection with the private placement, Agnico and GoldQuest will enter into an investor rights agreement (\"Investor Rights Agreement\") which will grant Agnico the right, at its election, to nominate one person to the Company's Board of Directors (and in the case of an increase in the size of the Board of Directors to 10 or more directors, two persons) and also to maintain its interest in GoldQuest through participation in future equity financings of the Company. These rights may only be exercised by Agnico if it owns at least a 10% interest in the Company (calculated in accordance with the Investor Rights Agreement). Additionally, the Investor Rights Agreement will prohibit Agnico from taking certain actions, including acquiring more than 19.99% of the issued and outstanding common shares of GoldQuest for a period of two years, subject to certain exceptions. Bill Fisher, Executive Chairman of GoldQuest, commented, \"We are pleased to welcome Agnico as a strategic shareholder. Agnico is a world-class mining company and a leader in corporate social responsibility. Agnico's investment represents a strong endorsement of our efforts in the Dominican Republic and recognizes the exploration and development potential of our company. We look forward to the continued positive development of our Romero Project with the ongoing participation of local communities, municipalities and government departments. The approximately C$23 million investment by Agnico places us in a strong financial position to advance both our exploration program and the development of our Romero Project.\" The proceeds from the private placement shall be primarily used for exploration and development at the Company's Dominican Republic properties and for general corporate and working capital purposes. All common shares issued in the pri...