Gowest announces $500,000 debt financing for Timmins
Gowest Gold Ltd. has entered into a loan agreement with Meirong Yuan, a director of Gowest, in respect of a bridge loan in the principal amount of $500,000. The proceeds of the loan will be used by Gowest for general corporate purposes. “This bridge loan will help the Company to carry on while we continue to work towards the significant refinancing required to support our efforts to bring our Bradshaw Gold Deposit into commercial production,” Fraser Elliott, Chairman, said.
The bridge loan matures on September 15, 2022. Interest on the daily outstanding principal balance shall accrue daily and be calculated, in arrears, at the rate of 12% per annum. The bridge loan may be repaid at any time prior to maturity without penalty.
About Gowest
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.
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