QGX Ltd.
TSX : QGX

QGX Ltd.

November 04, 2005 22:10 ET

QGX Announces Short Form Prospectus Offering

WATERDOWN, ONTARIO--(CCNMatthews - Nov. 4, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

QGX Ltd. ("QGX" or the "Company") (TSX:QGX) is pleased to announce that it has filed a preliminary short form prospectus in connection with a fully marketed offering of common shares (the "Offering") by a syndicate of underwriters (the "Underwriters") led by CIBC World Markets Inc. and including Sprott Securities Inc. and GMP Securities Ltd. The Company expects to raise approximately $35 million through the new issue of common shares (excluding the private placement discussed below).

Barrick Gold Corp. ("Barrick"), which presently holds an approximate 9.4% equity interest in the Company, has agreed to proceed with a concurrent private placement financing in the Company, in order to maintain its equity interest in the Company.

Net proceeds of the Offering and the private placement will be used by the Company primarily to finance ongoing capital expenditure requirements in Mongolia, with the balance for general corporate purposes including working capital.

The Offering and private placement are subject to regulatory approval, including approval of the Toronto Stock Exchange, and are expected to close in late November, 2005.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. QGX holds a large area of exploration licenses throughout Mongolia. QGX's most advanced property is the Golden Hills prospect in western Mongolia. QGX has filed an independent NI 43-101 report outlining a resource containing approximately 3.3 million gold-equivalent ounces at the Central Valley Zone of Golden Hills (measured, indicated and inferred). QGX has also recently filed an independent 43-101 report in respect of its Baruun Naran coal project where results to date indicate that the property may hold a significant coal deposit containing metallurgical and thermal grade coal. Barrick Gold Corp. holds a 9.4% equity interest in QGX as part of a strategic relationship between the companies.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in QGX's periodic filings with securities regulators. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions, are forward-looking statements. The risk factors that could cause actual results to differ from these forward-looking statements include, but are not restricted to, operational risk, environmental risk, financial risk, geopolitical risk, commodity risk, currency risk and other statements that are not historical facts as disclosed under the heading "Risk Factors" and elsewhere in QGX's periodic filings with securities regulators.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • QGX Ltd.
    David Anderson
    CEO
    (905) 689-9442
    or
    QGX Ltd.
    Paul Zweng
    COO
    (925) 855-0505
    Website: www.qgxgold.com