Gowest Gold Closes Private Placement
TSX VENTURE: GWA
TORONTO, ONTARIO--(Marketwired - Dec. 29, 2017) - Gowest Gold Ltd. (TSX VENTURE:GWA) (the "Company") is pleased to announce the closing of a non‐brokered private placement for aggregate gross proceeds of $707,400. In connection with the private placement, the Company issued 190,000 common share units at a price of $0.16 per unit for $30,400 and 3,761,112 flow‐through units at a price of $0.18 per unit for $677,000. Each common share unit consists of one common share in the capital of the Company and one half (1/2) of a common share purchase warrant. Each flow‐through unit consists of one common share in the capital of the Company issued on a "flow through" basis pursuant to the Income Tax Act (Canada) and one half (1/2) of a common share purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement.
The proceeds of the private placement, along with the remainder of the previously announced Pre‐Paid Forward Gold Purchase Agreement (the "Agreement") between PGB Timmins Holdings LP (an investment vehicle controlled by Pandion Mine Finance, LP) and Gowest will be used to fund the exploration programs of the Company's North Timmins Gold Project, the ongoing underground development of the Company's Bradshaw mine and for general working capital purposes. (For further detail regarding the Pandion financing, see Gowest press release dated Dec. 16, 2016.)
In connection with the private placement, the Company paid finders' fees consisting of $37,380 in cash and 207,667 non‐transferable compensation warrants. Each compensation warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months after the closing date.
All securities issued in connection with the final tranche closing of the private placement are subject to a four‐ month hold period pursuant to the applicable securities laws with an expiry date of April 30, 2018.
Please visit our website (www.gowestgold.com) for photographs of the ongoing development at Bradshaw and to review our latest corporate presentation.
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
The technical information in this news release has been reviewed and approved by Mr. Jeremy Niemi, P.Geo., Gowest's Director of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument 43‐101 standards.