La Quinta Resources Closes a Flow-Through Non-Brokered Private Placement with MineralFields Group
LA QUINTA RESOURCES CORPORATION 400 – 409 Granville Street, Vancouver, BC V6C 1T2
No.11-26 LAQ: TSX-V NEWS RELEASE SEC 12G file#82-35061
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
La Quinta Resources Closes a Flow-Through Non-Brokered Private Placement with MineralFields Group
Vancouver, B.C. September 6, 2011 - La Quinta Resources Corporation (TSX-V: LAQ / Frankfurt: LQK) (“La Quinta” or the “Company”) is pleased to announce the closing of the Flow-Through non-Brokered private placement first announced on August 17, 2011 and amended on August 30, 2011. A total of 4,705,877 Units of Flow-through shares were placed at a price of $0.085 per unit, for a total proceed of $399,999.55.
“We are very pleased to be entering into a relationship with MineralFields Group who placed a total of $275,000.00 in the Flow-Through non-brokered private placement. This is an important milestone in the growth of La Quinta and we look forward to working with MineralFields Group as we develop our holdings in the B.C region,” said Glen Watson, CEO of the Company.
The Company intends to use the net proceeds of the sale for the Carruthers Pass property’s initial work program and related working capital.
The Carruthers Pass property is a massive sulfide project with copper, gold and silver located 70km south of Kemess copper-gold mine. The project consists of 8 claims covering 3,250 hectares. The Carruthers Pass project is under option from Cariboo Rose Resources Ltd. (TSX-V:CRB) (“Cariboo Rose”). Under the terms of the LOI, the Company can acquire 90% of the project from Cariboo Rose over a six (6) year term by spending $2 million in work commitments on the project, and making payments of $470,000 cash and issuing 2 million shares of the Company’s common stock to Cariboo Rose. The Company further has opportunity to acquire the remaining 10% interest from Cariboo Rose at fair market value. The project is subject to a 2.5% royalty, which may be reduced to 1% royalty by purchase from the underlier, Phelps Dodge Corporation of Canada, Limited for $1.5 million.
Limited Market Dealer Inc. will received six percent (6%) finder’s fees for a total $16,500.00 and, eight percent (8%) finder’s fee warrants for a total of 258,823 warrants. The finder’s warrants entitle Limited Market Dealer Inc. to acquire one additional Non Flow-Through common share at an exercise price of $0.10 any time up to September 2, 2013.
The Company received final approval for the Flow-Through non-brokered private placement on September 2, 2011. Furthermore, in accordance with the TSX, the securities issued pursuant to the offering are subject to a four (4) month applicable hold period ending January 2, 2012.
This press release is not intended for U. S. distribution and does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Entity unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About MineralFields Group:
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®, and have raised over $1 billion in their 10 year history.
About La Quinta Resources Corporation
La Quinta is a junior precious metals exploration company actively seeking mineral opportunities for the benefit of our stakeholders. Currently the Company is focused on exploring for gold, silver and copper on the Easter project and its Black Jack properties in Nevada and on Carruthers Pass, British Columbia. The Easter Project is underlain by an epithermal quartz-adularia vein stockwork system hosted within Tertiary volcanic rocks of the Caliente Caldron Complex of southeastern Nevada. Numerous drill programs were conducted over the past 27 years by several operators. The resultant 121 holes and five adits were used to outline a 43-101 compliant resource of 2.6 million tons at 1.3 g/t gold (0.038 oz/t) and 14 g/t silver (0.4 oz/t) within an area of gold mineralization with a strike length of at least 6,450 feet (1,966 m) and drill-defined widths up to 90 feet (27.4 m). Significant prior intercepts include up to 0.194 oz. Au / ton over 90 feet (6.6 g/t over 27.4m true thickness) (including 0.549 oz. Au / ton over 15 feet [18.8 g/t over 4.5m]) and 0.084 oz. / ton over 110 feet (including 0.534 oz. Au / ton over 5 feet) [2.88 g/t over 33.5 m w/internal 18.3 g/t in 1.52 m]. The Black Jack property, an early-stage exploration target in NE Nevada, consists of old mine workings that contain silver- gold-base metals veins hosted in Ordovician limestones that overlie nearby Cambrian shale. The Carruthers Pass property is a massive sulfide project with copper, gold and silver located 70km south of Kemess copper-gold mine. The project consists of 8 claims covering 3,250 hectares. No resources have been identified at either Black Jack or Carruthers Pass properties.
On behalf of the board Glen Watson CEO and Director
For further information, please contact:
Glen Watson, CEO and Director: 1(604) 803-5229 Ed Baer, Director: 1(416) 804-0512
La Quinta Resources Corp.
1(604) 943-1199 - Email: [email protected] - Web Site: www.laquintaresources.com
“Neither 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.”This document includes forward- looking statements. When used in this document, the words “potential”, “plan”, ”could”, “estimate”, “expect”, “intend”, “may”, “should”, and similar expressions are intended to be among the statements that identify forward-looking statements. Although La Quinta believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.