Northquest Ltd.
TSX VENTURE : NQ

Northquest Ltd.

April 05, 2011 16:12 ET

Northquest Ltd. Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - April 5, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Northquest Ltd. (TSX VENTURE:NQ) ("Northquest") is pleased to announce that it has entered into an agreement with NCP Northland Capital Partners Inc. ("NCP") to act as agent in connection with a proposed private placement (the "Offering") pursuant to which Northquest will issue (i) units ("Units") at a price of $0.80 per Unit; and (ii) "flow-through" units ("FT Units") at a price of $1.05 per FT Unit, in any combination to raise aggregate gross proceeds of up to $6,000,000. Each Unit will consist of one common share of Northquest and one-half of one share purchase warrant, each whole such share purchase warrant entitling the holder thereof to acquire one additional common share of Northquest for a period of 24 months at an exercise price of $1.65 per share. Each FT Unit will consist of one "flow through" common share of Northquest and one-half of one share purchase warrant, each whole such share purchase warrant entitling the holder thereof to acquire one additional common share of Northquest (which shall not be a "flow through share") for a period of 24 months at an exercise price of $1.50 per share. 

Northquest has also granted to NCP an over-allotment option to increase the size of the Offering to issue additional Units and FT Units in any combination to raise additional gross proceeds of $900,000, exercisable in whole or in part at any time up to the closing date. NCP will receive a cash commission and broker warrants as compensation for acting as agent in the Offering. 

Closing of the Offering is anticipated to occur on or about April 29, 2011. The Offering remains subject to the approval of the TSX Venture Exchange. 

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.

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.

Contact Information

  • Northquest Ltd.
    Jon North
    President and Chief Executive Officer
    (416) 306-0202