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Closing of Final Tranche of Private Placement |
Q-GOLD ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT FINANCING
SEC 12g 3-2(b) Exemption # 82-4931
Fort Frances, Ontario, January 15, 2010
Q-Gold Resources Ltd. (“Q-Gold” or the “Corporation”) (TSX VENTURE: QGR) (http://www.qgoldresources.com) is pleased to announce that it has closed the second and final tranche of its previously announced non-brokered private placement (the "Offering") for gross proceeds of $326,550. Combined with the previously announced closing (see press release dated January 8, 2010), the Company has received aggregate gross proceeds of $598,550 from the Offering, representing an over subscription of $36,050.
Pursuant to the second closing tranche of the Offering the Corporation issued 1,866,000 units in the capital of Q-Gold at a price of $0.175 each (the “Units”). Each Unit consists of one common share (the “Common Share") and one-half of one common share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder to acquire one additional Common Share at an exercise price of $0.30 for a period of 24 months from issuance.
Also, pursuant to the second closing tranche of the Offering, the Corporation paid cash finder's fees of $6,300 and $10,430 to Jennings Capital Inc. and Canaccord Financial Ltd., and issued them 45,000 and 74,500 finder’s fee warrants (“Finder’s Warrants”), respectively. Each Finder’s Warrant entitles the holder to acquire one Unit (a “Finder’s Unit”) at an exercise price of $0.175 for a period of 24 months from issuance. The Finder’s Unit issuable upon exercise of the Finder’s Warrant is composed of one common share and one-half of one Warrant. Also, the Corporation paid additional cash finder's fees of $7,994 and issued 11,420 Finder's Warrants to other parties in connection with the closing of the second trance.
Two insiders of the Corporation subscribed for an aggregate of 100,000 Units of the Offering.
All securities issued in connection with the Offering will be subject to a four month restriction from resale as stipulated under applicable securities legislation and the TSX Venture Exchange (the “Exchange”), expiring on May 16, 2010.
Closing of the Offering is subject to all regulatory approvals, including those of the Exchange.
Proceeds from the second tranche of the Offering will be used by Q-Gold for continued gold exploration on the Corporation’s properties in the historic gold camps at Mine Centre, Ontario and Crown King, Arizona and for general corporate purposes.
About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals on its 29,000 acres of Ontario holdings in the historic Gold Camp at Mine Centre, including 5 historic gold mines. In addition, the Corporation holds options on seven historic gold and silver mines in the historic Arizona gold camp of Crown King, and two prospective copper porphyries and one copper / zinc prospect in Arizona.
For all future Q-Gold investor relations needs, investors are asked to visit the Q-Gold IR Hub at http://www.agoracom.com/IR/Q-Gold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to email all questions and correspondence to QAU@agoracom.com where they can also request addition to the investor email list to receive all future press releases and updates in real time.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially form the Company’s expectations and projections. 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.
