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| June 19, 2014 --- Vol. 08, No. 25 | June 2014
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Nunavut
FINANCE – Northquest Ltd. June 17 reported that it has received the shareholder approval required by the TSX Venture Exchange to complete a private placement that will result in Nord Gold N.V. becoming a new control person of Northquest. Completion of the offering, which remains subject to Nordgold’s completion of satisfactory due diligence, is expected to occur around July 14. Northquest President and CEO Jon North 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." Pursuant to the financing, Nord Gold has agreed to purchase about 12.78 million units of Northquest for C$2.5 million, which would provide the Russia-based mining company roughly a 22.3 percent stake in the Canadian junior.
Additionally, Northquest announced that it has issued a further 500,000 units at a price of C18 cents per unit to raise additional aggregate gross proceeds of C$90,000. Each unit consists of one common share of Northquest and one-half of a purchase warrant. Each warrant entitles the holder to acquire one additional Northquest share at C24 cents for a period of 24 months, subject to early expiry conditions.
EQUIPMENT PURCHASE – Aston Bay Holdings Ltd. June 11 said that it has amended a memorandum of understanding with Lyncorp International Ltd., a company wholly-owned by David Mullen, to purchase equipment including four Christensen CS10 core drills and all associated equipment. Aston Bay and Lyncorp have agreed to modify the payment terms, such that Aston Bay will pay C$300,000 in cash by July 10, C$325,000 in cash by August 10, and C$375,000 in cash or stock (valued on the previous 10-day weighted average prior to the date of payment), which is to be made by July 10, 2015. The amended payment terms allow for less effective dilution of the company’s stock, which is currently trading higher than on the date of the original MOU. The closing of the transaction will now take place after the end of the period of exclusivity between the company and a major mining company, as previously announced on May 26. The amended MOU will be superseded by a definitive agreement that will be entered into by Aston Bay and Lyncorp, and will be subject to receipt of TSX Venture Exchange approval. Closing of the acquisition is also subject to, among other things, receipt of an appraisal for the Equipment and confirmation that title to the Equipment is in good standing. A submission for TSX Venture Exchange approval for the acquisition of the equipment will be made following the execution of a definitive agreement and the completion of an appraisal, as noted above. In addition, Aston Bay has retained the services of Renmark Financial Communications Inc. to handle its investor relations activities.
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