Silver Quest Announces $5.5 Million Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/09/10 -- Silver Quest Resources Ltd. (TSX VENTURE: SQI) (the 'Company') is pleased to announce it has negotiated a best efforts private placement (the 'Offering') with BayFront Capital Partners Ltd. as lead agent for up to $2.5 million in flow-through common shares (the 'FT Shares') at a price of $0.75 per FT Share and up to $3 million in hard dollar units (the 'HD Units') at a price of $0.65 per HD Unit for aggregate gross proceeds of up to $5.5 million.
Each HD Unit will consist of one common share and one-half of one non-transferable common share purchase warrant ('Warrant'). Each Warrant will entitle the holder to purchase one additional common share for two years from the date of closing at a price of $0.75 per share.
Upon the closing of the Offering, the Agent shall receive a commission paid in cash equal to 7% of the proceeds raised from the private placement. In addition, the Agent shall receive broker warrants exercisable to acquire such number of HD Units (and having the same terms as the HD Units underlying the Offering) as is equal to 6% of the aggregate number of FT Shares and HD Units issued pursuant to the private placement.
The funds raised from the issuance of the FT Shares will be used for general exploration expenditures which will constitute qualified exploration expenditures as defined in the Income Tax Act (Canada). Funds raised from the issuance of HD Units will be used for general working capital purposes.
Closing of the private placement is anticipated to occur on or before August 31, 2010 and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The securities issued will be subject to a standard four month hold period.
SILVER QUEST RESOURCES LTD.
Randy Turner, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Silver Quest Resources Ltd.
Investor Relations
604-687-3959
info@silverquest.ca