TORONTO, Oct. 19, 2015 (GLOBE NEWSWIRE) -- Evanachan Limited ("Evanachan") announces that it has subscribed, by way of a private placement, for 9,090,910 units (the "Units") of GoldQuest Mining Corp. ("GoldQuest") at a price of $0.11 per Unit for an aggregate amount of approximately $1,000,000 (the "Transaction"). Each Unit consists of one common share of GoldQuest (each, a "Common Share") and one-half of a Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles Evanachan to purchase one Common Share at a price of $0.18 for a period of three years from the date of issuance thereof.
Evanachan, a corporation wholly owned by Robert McEwen, entered into the Transaction for investment purposes and may increase or reduce its investment in GoldQuest according to market conditions or other relevant factors. Evanachan purchased the Units in reliance on the "accredited investor" exemption available pursuant to Canadian securities legislation.
Prior to the Transaction, Evanachan, together with Mr. McEwen, owned an aggregate of 6,000,000 Common Shares, representing approximately 4.1% of the then issued and outstanding Common Shares. After completion of the Transaction, Evanachan and Mr. McEwen together own an aggregate of 15,090,910 Common Shares and 4,545,455 Warrants, for a total of 19,636,365 Common Shares (assuming exercise of all such Warrants). Such Common Shares and Warrants represent approximately 9.2% of the issued and outstanding Common Shares on a non-diluted basis and approximately 11.7% of the issued and outstanding Common Shares on a partially-diluted basis.
A copy of the early warning report filed in connection with the Transaction will be made available on SEDAR (www.sedar.com). This news release is being issued under the early warning provisions of Canadian securities legislation.
CONTACT: CONTACT INFORMATION Evanachan Limited Robert McEwen 150 King Street West, Suite 2800 Toronto, Ontario M5H 1J9 (647) 258-0395Source:Evanachan Limited