Great Quest Metals Ltd.
TSX VENTURE : GQ
FRANKFURT : GQM

Great Quest Metals Ltd.

July 09, 2007 16:00 ET

Great Quest Arranges Flow-Through Financing for a Drill Program on the Taseko Copper-Gold-Molybdenum Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - Willis W. Osborne, President of Great Quest Metals Ltd. (TSX VENTURE:GQ)(FRANKFURT:GQM), is pleased to report a Flow-Through private placement with the Cordilleran I 2007 Partnership and five individuals for a total of $337,500, subject to regulatory approval. The financing takes advantage of the "super" flow-through provisions in BC to fund immediate work on the Company's Taseko copper-gold-molybdenum project, located in the Clinton Mining Division, British Columbia. The Company has agreed to issue 450,000 Units at a price of $0.75 per Unit, with each unit comprised of one Flow-Through share and one-half of a transferable warrant. Each full warrant entitles the holder to purchase an additional common share of the Company at a price of $0.80 for a period of twelve months from closing. The Cordilleran I 2007 Partnership subscribed for 400,000 Units or $300,000 of the placement, and a finder's fee in respect of this subscription is payable to Canaccord Capital Corporation. The finder's fee consists of 10% cash commission and 40,000 Finder's Warrants to purchase 40,000 common shares of the Company. The Finder's Warrants are exercisable at $0.75 per share for a period of one year from closing. All shares issued under this private placement are subject to a four month hold period from closing.

The warrants attached to these placements are all subject to an early expiration provision such that at any time after the date of closing, should the common shares of the Company trade on the TSX Venture Exchange at or above a weighted average trading price of $ 1.00 per share for 10 consecutive days, the Company may give notice to the holders of the warrants via a news release that the warrants will expire 30 days from the date of providing such notice.

Mobilization for a full season's program on the Taseko project will begin immediately. The objectives for this next phase of drilling are to further delineate the copper-gold mineralization identified in the Empress zone, outline copper-molybdenum mineralization to the north, east and west of the Granite Creek discovery hole and test copper-molybdenum soil anomalies west of the Buzzer zone. The Company plans additional financing to continue its work on the Taseko and other projects.

In Mali, drilling will end with the onset of the rainy season this month. Assay results will be announced when available. Field work on the Company's projects in Mali is to resume following the rainy season. Working capital raised in the second financing will be used for exploration and payments on the Company's concessions, and for general corporate purposes in British Columbia and Mali.

ON BEHALF OF THE BOARD OF DIRECTORS

Willis W. Osborne, President

12g3-2(b) Exemption #82-3116

Standard & Poor's Listed

The statements that are not historical facts and are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from the targeted results.

The TSX Venture Exchange has neither approved nor disapproved the information enclosed in this release.

Contact Information

  • Great Quest Metals Ltd.
    George Butterworth
    Investor Relations
    (604) 689-2882 or Toll Free: 1-877-325-3838
    (604) 684-5854 (FAX)
    Email: info@greatquest.com
    Website: www.greatquest.com
    or
    Ascenta Capital Partners Inc.
    Jamie Mathers
    Investor Relations
    (604) 684-4743 ext 236 or Toll Free: 1-866-684-4743