Northquest Ltd. Receives Shareholder Approval to Close $2,000,000 Private Placement and Completes Additional Private Placement

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

TORONTO, June 17, 2014 /CNW/ - Northquest Ltd. (TSX-V:NQ) ("Northquest") is pleased to announce that it has received the shareholder approval required by the TSX Venture Exchange to complete its private placement of units at a price of $0.20 per unit (the "$0.20 Offering"). Further to its news release dated June 9, 2014, the $0.20 Offering will result in Nord Gold N.V. (LSE:NORD) ("Nordgold") becoming a new control person of Northquest and is expected to occur on or about July 14, 2014. Completion of the $0.20 Offering remains subject to Nordgold's completion of satisfactory due diligence.

Jon North, President and CEO said, "I am delighted that we received shareholder approval for the Nordgold transaction as quickly as we did and that it did not require a shareholder meeting. We look forward to this year's fully funded exploration program with our new partner Nordgold."

Northquest is also pleased to announce that it has issued an additional 500,000 units (the "Units) at a price of $0.18 per Unit to raise additional aggregate gross proceeds of $90,000. Each Unit consists of one common share of Northquest (a "Common Share") and one-half of one common share purchase warrant (each whole such warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one additional Common Share at an exercise price of $0.24 per Common Share for a period of 24 months, provided that if, at any time after October 18, 2014, the volume weighted average price of the Common Shares on the principal stock exchange upon which the Common Shares are listed is equal to or exceeds $0.50 for 20 consecutive trading days, Northquest may accelerate the expiry date of the Warrants, in which event the Warrants will expire upon the date (the "Accelerated Expiry Date") which is 30 days following the dissemination of a press release by Northquest announcing the Accelerated Expiry Date.

All securities issued and issuable in connection with today's additional issuance of Units are subject to a statutory hold period expiring on October 18, 2014.

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.

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.

SOURCE Northquest Ltd.

Copyright 2014 Canada NewsWire