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Quest Rare Minerals Ltd. (TSX:QRM,NYSE:QRM) entered into an engagement letter with Secutor Capital Management Corp. and Marquest Asset Management Inc., as co-lead agents, for a private placement of up to 2,364,864 flow-through shares. The private placement is at a price of $0.74 per share, for maximum gross proceeds to Quest of $1.75 million, and up to 735,294 “hard-dollar” units at a price of $0.68 per unit, for maximum gross proceeds to the Company of $500,000. The total maximum gross proceeds from the proposed private placement are $2.25 million.
As quoted in the press release:
Each of the “hard-dollar” units will be comprised of one common share and one-half of a common share purchase warrant. Each of the full warrants will entitle its holder to acquire one additional Quest common share at a price of $1.00 for a period of 18 months from the closing date of the private placement.
Quest has granted an option to the co-lead agents, exercisable prior to the closing, to increase the size of the private placement by up to 354,729 additional “flow-through” shares (15%) and up to 110,294 additional “hard-dollar” units (15%), to be issued at the same price as the “flow-through” shares and “hard-dollar” units, respectively. The agents’ option may be exercised at any time up to 24 hours prior to the closing of the private placement. If the agents’ option is exercised in full, Quest will issue a total of 2,719,593 “flow-through” shares for proceeds of $2,012,500, and 845,588 “hard-dollar” units for proceeds of $575,000, for a total offering of $2,587,500.
Click here to read the Quest Rare Minerals Ltd. (TSX:QRM,NYSE:QRM) press release
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