Goldquest raising $16.2 million from upsized placement
Goldquest Mining Corp. [GQC-TSXV], a company with projects in the Dominican Republic, has upsized a previously announced non-brokered private placement financing to $16.2 million. The company also said it has closed the first $10.7 million tranche the private placement of common shares that was expected to raise up to $15 million.
In response to strong investor demand, the private placement has been increased to a maximum of 32.35 million common shares priced at 50 cents each, for total gross proceeds of $16.17 million.
Under the first tranche, the company issued 21.4 million common shares priced at 50 cents per share, raising gross proceeds of $10.72 million.
Goldquest has entered into a subscription agreement with Guess Investments Ltd, an existing shareholder and insider of the company, for the purchase of the remaining 10.9 million shares under the private placement for 50 cents per share, generating additional proceeds of $5.4 million (the second tranche).
The company said approximately 82% of the funds raised in the first tranche were contributed by investors based in the Dominican Republic, reflecting strong national support for the company’s projects and its commitment to local development. “The entire second tranche will also be financed by Dominican capital,’’ the company said.
On Tuesday, Goldquest shares were up 1.8% or $0.01 to 57 cents. The shares trade in a 52-week range of 60 cents and $0.155.
Goldquest is a Canadian mineral exploration and developing company with projects in the Dominican Republic. The company is focused on advancing the Romero gold-copper project and exploring the Tireo formation, a district known for its rich mineral potential.
Net proceeds of the private placement will be used to fund the following initiatives. The include:
- Completion of the Environmental and Social Impact Assessment (ESIA) at Romero.
- Finalization of the bankable feasibility study for the Romero project.
- Mineral exploration at the Tireo belt.
“The Romero gold-copper project represents a low-impact underground mining development opportunity with the potential to serve as a significant economic driver for San Juan province and the Dominican Republic as a whole,’’ the company has said.
The project, which includes the Romero and Romero South deposits, is located in the La Escandalosa exploration concession of Goldquest’s Tireo Property, which covers 3,997 hectares. The Tireo Property (also sometimes known as the San Juan concession) is located in the Central Cordillera of the Dominican Republic near the San Juan provincial capital of San Juan de La Maguana.
The company has said it is committed to advancing the environmental permit application process with the Ministry of Environment and Natural Resources, updating the economic assessments, and furthering exploration along the highly prospective Tireo formation.