Shares of junior precious metals miner, Golden Queen Mining Co. Ltd. (OTCQX: GQMNF) dove 17% in the early hours of trading on Thursday, July 14, 2016, featuring heavier than usual volumes. During the past three months, Golden Queen Mining Co. Ltd. (OTCQX: GQMNF) has average daily volume of around 172,731 shares. However, nearly 344,000 shares or $392,160 in dollar volume have exchanged hands during the first several hours of trading on Thursday.

The big new out today that is driving the stock lower comes from an announcement that Golden Queen Mining Co. Ltd. (OTCQX: GQMNF) had obtained C$13 million in deal financing from a group of investment dealers, including Cormark Securities Inc. and M Partners Inc. Here is the press release from this morning detailing more about the deal financing:

VANCOUVER, July 14, 2016 /PRNewswire/ – Golden Queen Mining Co. Ltd.  (TSX:GQM; OTCQX:GQMNF) (the “Company” or “Golden Queen“) announces that it has entered into an binding agreement dated July 14, 2016 (the “Agreement“) with a syndicate of investment dealers led by Cormark Securities Inc. and including M Partners Inc. (the “Underwriters“) pursuant to which they have agreed to purchase on a bought deal basis the units disclosed in the offering announced on July 13, 2016.  The offering comprises 8,970,000 units of the Company (the “Units“) at the price of C$1.45 per Unit (the “Offering Price“) for aggregate gross proceeds in the amount of C$13 million (the “Offering“).  Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, has acted as financial advisor in connection with the transaction. Each Unit is comprised of 1 common share of the company and 1 half warrant, with each whole warrant exercisable at an exercise price of C$2.00 per common share, for a period of 36 months following the closing of the Offering.

The Company has granted the Underwriters an option to purchase 1,345,000 additional Units at the Offering Price to raise additional gross proceeds of up to C$1,950,250 for a period of 30 days after and including the Closing Date to cover over-allotments, if any, and for market stabilization purposes.  If the option is exercised in its entirety, the aggregate gross proceeds of the Offering to the Company will be C$14,950,250.

The Company intends to use the net proceeds from the Offering for the partial repayment of the Company’s loans that are due in December 2016 and for general corporate purposes. The Offering is anticipated to close on or about July 25, 2016 (the “Closing Date“) and will be subject to customary conditions and receipt of regulatory approvals, including the approval of the TSX. The Company and the Underwriters anticipate entering into a formal underwriting agreement regarding the Offering that will replace the Agreement, on or about July 18, 2016.

The Units to be issued under the Offering in Canada will be offered by way of a prospectus supplement (the “Prospectus“) which is expected to be filed on July 18, 2016 to accompany the previously filed short form base shelf prospectus of the Company, in British Columbia, Alberta and Ontario.  A copy of the Prospectus relating to the Offering in Canada will be available on SEDAR at  The Prospectus will contain important detailed information about the securities being offered. Investors should read the Prospectus before making an investment decision.

The Units to be issued under the Offering in the United States will be offered by way of a Form S-3 registration statement, and a prospectus and a preliminary prospectus supplement filed with the United States Securities and Exchange Commission (the “SEC”) for which this communication relates. These documents are available on EDGAR on the SEC website at Alternatively, the Company, any agent or any dealer participating in the offering will arrange to send you the prospectus, preliminary prospectus supplement and, when available, the final prospectus supplement or you may request it from Cormark Securities Inc. at

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.  Offers and sales in the United States will only be made to persons which qualify as “institutional investors” under the laws and regulations of their state of domicile.

About Golden Queen Mining Co. Ltd.:

Golden Queen is an emerging gold and silver producer holding a 50% interest in an open pit, heap leach mining operation on the Soledad Mountain property, located just outside the town of Mojave in Kern County in southern California.

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This news release contains forward-looking information and statements within the meaning of applicable Canadian and United States securities laws (herein referred to as “forward-looking statements”) that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All information and statements in this news release that are not statements of historical fact may be forward-looking statements, including the contemplated marketed public offering, the size of such offering, the anticipated closing date and the anticipated use of proceeds. Such statements or information are only intentions and expectations of management and reflect the current beliefs of management and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements due to these statements being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature forward-looking statements involve assumptions and known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions and other forward-looking statements will not occur. Some of the assumptions made by Golden Queen, upon which such forward-looking statements are based, include: the ability of the Golden Queen to obtain all required regulatory approvals in connection with the Offering; future market conditions not being materially different from those generally experienced by Golden Queen during the immediately preceding twelve month period; there will be no material changes to laws, policies and regulations affecting Golden Queen and its operations; and the business operations of the operating businesses of Golden Queen will continue on a basis consistent with prior years.

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