GoldQuest Announces C$22,860,000 Strategic Investment by Agnico Eagle
GoldQuest Announces C$22,860,000 Strategic Investment by Agnico Eagle
VANCOUVER, BRITISH COLUMBIA --(Marketwired - March 6, 2017) - GoldQuest Mining Corp. (TSX
VENTURE:GQC)(FRANKFURT:M1W)(BERLIN:M1W) ( "GoldQuest" or the " Company") is pleased to
announce that Agnico Eagle Mines Limited ("Agnico") has agreed to acquire, by way of non -brokered
private placement, 38,100,000 common shares of GoldQuest at a price of C$0.60 per common share for
a total investment of C$22,860,000. Upon closing of th e private placement, Agnico will own
approximately 15% of the issued and outstanding common shares of GoldQuest.
In connection with the private placement, Agnico and GoldQuest will enter into an investor rights
agreement ("Investor Rights Agreement") which will grant Agnico the right, at its election, to nominate
one person to the Company’s Board of Directors (and in the case of an increase in the size of the Board
of Directors to 10 or more directors, two persons) and also to maintain its interest in GoldQuest through
participation in future equity financings of the Company . These rights may only be exercised by Agnico
if it owns at least a 10% interest in the Company (calculated in accordance with the Investor Rights
Agreement). Additionally, t he Investo r Rights Agreement will prohibit Agnico from taking certain
actions, including acquiring more than 19.99% of the issued and outstanding common shares of
GoldQuest for a period of two years, subject to certain exceptions.
Bill Fisher, Executive Chairman of GoldQuest, commented "We are pleased to welcome Agnico as a
strategic shareholder. Agnico is a world -class mining company and a leader in corporate social
responsibility. Agnico’s investment represents a strong endorsement of our efforts in the Dominican
Republic and recognizes the exploration and development potential of our company. We look forward
to the continued positive development of our Romero Project with the ongoing participation of local
communities, municipalities and government departments. The approximately C$23 million investment
by Agnico places us in a strong financial position to advance both our exploration program and the
development of our Romero Project."
The proceeds from the private placement shall be primarily used for exploratio n and development at
the Company’s Dominican Republic properties and for general corporate and working capital purposes.
All common shares issued in the private placement will be subject to a statutory four month hold period.
Closing of the private place ment is subject to certain conditions, including approval of the TSX Venture
Exchange.
About GoldQuest
GoldQuest is a Canadian based mineral exploration company with projects in the Dominican Republic.
The Company is permitting the Romero Gold Copper proj ect, following the publication of the Pre
Feasibility Study on November 11th 2016, as well as drilling the surrounding Tireo district. GoldQuest is
traded on the TSX-V under the symbol GQC and in Frankfurt/Berlin under the symbol M1W.
Forward-looking statements:
Statements contained in this news release that are not historical facts are forward-looking information
that involves known and unknown risks and uncertainties. Forward -looking statements in this news
release include, but are not limited to, the percent interest of Agnico in the Company upon closing, the
intent to enter into certain agreements, the future effect of certain agreements, the intended use of
proceeds of the private placement and the future development of the Romero Project. In certain cases,
forward-looking statements can be identified by the use of words such as "plans", "potential", "future",
"look forward to", "ongoing" and similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur . Forward -looking statements are necessarily based upon the current
belief, opinions and expectations of management that, while considered reasonable by the Company,
are inherently subject to significant business, economic, competitive, political and social uncertainties
and other contingencies. Many factors could cause the Company's actual results to differ materially
from those expressed or implied in the forward -looking statements. These factors include, among
others, the assumptions and risks associated with the results of the PFS, timeliness and success of
regulatory approvals, market prices, metal prices, availability of capital and financing, general economic,
market or business conditions, as well as other risk factors set out under the heading "Risk and
Uncertainties" in the Management’s Discussion and Analysis dated September 30, 201 6, which is
available on SEDAR at www.sedar.com . Investors are cautioned not to put undue reliance on forward -
looking statements due to the inherent uncertainty therein.
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 news
release.
CONTACT INFORMATION
GoldQuest Mining Corp.
www.goldquestcorp.com
GoldQuest Mining Corp.
Julio Espaillat
President & Chief Executive Officer
+1-829-919-8701
GoldQuest Mining Corp.
Bill Fisher
Executive Chairman - Toronto
+1-647-271-4505
GoldQuest Mining Corp.
Katherine Fedorowicz – Investor Relations
1-877-919-5979