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TORONTO, July 14, 2014 /CNW/ - Northquest Ltd. (TSX-V:NQ)
("Northquest") is pleased to announce that it has closed the
second tranche of its previously announced non-brokered private
placement (the "Offering") pursuant to which Northquest has
issued an aggregate of 10,000,000 units (the "Units") to
Nord Gold N.V. ("Nordgold")
(LSE: NORD) at a price of $0.20 per
Unit to raise aggregate gross proceeds of $2,000,000. Each Unit consists of one common
share of Northquest (a "Common Share") and one-half of one
common share purchase warrant (each whole such warrant, a
"Warrant"). Each Warrant entitles the holder thereof to
acquire one additional Common Share at an exercise price of
$0.27 per Common Share for a period
of 24 months, provided that if, at any time after November 15, 2014, the volume weighted average
price of the Common Shares on the principal stock exchange upon
which the Common Shares are listed is equal to or exceeds
$0.50 for 20 consecutive trading
days, Northquest may accelerate the expiry date of the Warrants, in
which event the Warrants will expire upon the date (the
"Accelerated Expiry Date") which is 30 days following the
dissemination of a press release by Northquest announcing the
Accelerated Expiry Date.
All securities issued and issuable in connection with the
Offering are subject to a statutory hold period expiring on
November 15, 2014.
Nordgold has the right to appoint one representative to
Northquest's board of directors (the "Board") and the right
to participate pro rata in all future equity issuances by
Northquest, subject to certain conditions. In connection with
Nordgold's appointment right, Northquest has increased the size of
the Board to five and appointed Igor
Klimanov, Development Project Director of Nordgold, to the
Board. Mr. Klimanov has been with Nordgold since its
inception as the gold mining division of OJSC Severstal in 2007. In
September 2009, he was appointed to
the board of directors of High River Gold Mines Ltd.
("High River"). Previously,
he was CEO of High River and
Manager for Strategy and Corporate Development at Severstal
Resources. Igor holds a Ph.D. from the Swiss
Federal Institute of Technology and an Engineering Physics
degree from the Moscow Engineering and Physics Institute.
Jon North, President and CEO of
Northquest stated: "I am delighted to report the closing of this
transaction with Nordgold together with the other benefits that
will accrue to Northquest because of this transaction. I am also
very pleased to report that in early July two Nordgold executives
and a technical team of two of Nordgold's geologists completed
their due diligence assessment of the Pistol Bay property in
Nunavut, Canada, which included a
four day site visit by the technical team. As expected, the results
of the site visit were positive and we are very happy to have the
confidence and approval of Nordgold and their endorsement of the
Pistol Bay Gold Project. We look forward to working with
Nordgold on the development of the Pistol Bay project in the
Canadian Arctic."
Nordgold currently holds 12,777,777 Common Shares (representing
22.6 % of the issued and outstanding Common Shares on a non-diluted
basis) and warrants to acquire up to an additional 6,388,889 Common
Shares.
Nordgold is an international pure-play gold producer established
in 2007 and publicly traded on the London Stock Exchange. Nordgold
has expanded rapidly through acquisitions and organic investment,
achieving a rate of growth unmatched in the industry during that
period. In 2013, Nordgold's gold production increased to 924,000
ounces from 717,000 ounces in 2012. Nordgold operates nine mines in
Russia, Kazakhstan, Burkina
Faso and Guinea. Nordgold
has two development projects, four advanced exploration projects
and a diverse portfolio of early exploration projects and licenses
in CIS, West Africa and
French Guiana. Nordgold employs
over 10,000 workers.
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.