Gowest Announces Closing of Second Investment by Fortune Future Holdings Limited

Gowest Gold Ltd. announced the completion of a second private placement with Fortune Future Holdings Limited in which the corporation issued 36,250,000 units to the investment firm, at a price of $0.08 per unit, for gross proceeds to the Corporation of $2,900,000.  

Each unit was comprised of one common share of the Corporation and one common share purchase warrant exercisable to acquire one common share of the Corporation at a price of $0.11 until September 30, 2016.

The money raised by Gowest will be used to proceed with the next phase in developing its Bradshaw Gold Deposit on it Timmins North.

"We are very pleased to be in a position financially to proceed with the next stage of development, including an independent Pre-feasibility Study, that takes us a step closer to bringing the Bradshaw Gold Deposit into being the next new gold mine in the Timmins Camp" said Greg Romain, Chief Executive Officer of Gowest.

Fortune Future Holdings has now purchased a total of 42,500,000 Units pursuant to the private placement for aggregate gross proceeds to the Corporation of $3,400,000.  In total Fortune Future Holdings Limited now will hold 85,000,000 common shares in Gowest, representing approximately 33.29% of Gowest shares.

By virtue of the recent private placement, Mr. Yungang Wu, a nominee of Fortune, was appointed to Gowest’s board of directors.  Mr. Wu is a professional geologist with over 20 years of experience internationally in mineral exploration and mining. He is a member of the Association of Professional Geoscientists of Ontario and holds a Master Degree in Mineral Deposits from Jilin University, China. Upon Mr. Wu's appointment as a director of the Corporation, he was granted options exercisable to purchase up to 400,000 common shares of the Corporation, at an exercise price of $0.085 per share, until September 30, 2019.

"We are also pleased to welcome Mr. Wu to the Board and look forward to working with him and Fortune."

As described in Gowest’s press releases dated June 23, 2014 and July 11, 2014, the Second Fortune Closing forms part of a larger offering of units pursuant to which the company raised an aggregate of $4,000,000.

All of the securities issued in connection with the Second Fortune Closing are subject to a hold period expiring four months and one day after date of issuance.

Gowest is a Canadian gold exploration and development company focused on the exploration and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP).

Earlier this year year Gowest signed a memorandum of understanding with United Commodities of North Cobalt, Ontario to refine gold concentrates from its Bradshaw property when the mine becomes operational. Previously Gowest signed an agreement to have its gold ore processed at the Kidd Creek mill in Timmins.

 Gowest is exploring additional gold targets on its 109-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. The latest updated resource estimate for Bradshaw included approximately 945,600 ounces of gold ("Au") in the Indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne ["g/t"] Au) and 536,800 ounces of gold in the Inferred category (3.7 million tonnes at a grade of 4.2 g/t Au). As was used in the Corporation's Preliminary Economic Assessment, the current estimate is based on a 3.0 g/t Au cut-off and a gold price of US$1,200/oz. This resource estimate has been completed by Neil N. Gow, P. Geo., an independent Qualified Person, and reported in accordance with the requirement of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and CIM Standards on Mineral Resources and Reserves.