Home > News > Gowest closes Final Tranche...

Gowest closes Final Tranche of Private Placement for work at Bradshaw

Dec 20, 2023

Gowest Gold Ltd. has closed the final tranche of its previously announced upsized non-brokered private placement of flow-through units of the corporation. 

Pursuant to the final tranche closing of the Offering, the Corporation issued and sold an additional 1,428,570 FT Units at a price of $0.105 per FT Unit for aggregate gross proceeds of $150,000. These funds are in addition to the $800,000 closed on previously by the Corporation, bringing the total gross proceeds of the Offering to $950,000. 

Each FT Unit comprises one common share and one-half common share purchase warrant (each whole common share purchase warrant, a "Warrant"), issued on a flow-through basis, with each Warrant being exercisable to acquire one additional common share of the Corporation at a price of $0.14 for a period of 24 months following the closing of the Offering. The common shares underlying the Warrants will not be issued as flow-through shares. 

The gross proceeds of the Offering will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act") and renounced to subscribers under the Offering with an effective date no later than December 31, 2023. Such Canadian exploration expenses will also qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act.

It is anticipated that the proceeds from the Offering will be used to expand the mineable resource at the Corporation's 100% owned Bradshaw Gold Deposit ("Bradshaw"), as well as to further test other parts of the Corporation's North Timmins Gold Project ("NTGP") area where notable gold has previously been intercepted. The latter includes both the Roussain Gold Zone, located approximately two kilometers northeast of Bradshaw, and the Sheridan Gold Zone, located just west of Bradshaw.

In connection with the Offering, the Corporation paid finder's fees of $9,000 in cash. 

All securities issued or issuable pursuant to the Offering will be subject to a hold period in Canada expiring four months and one day after the date of issuance.

All dollar amounts referred to in this press release are in Canadian Dollars, except where expressly indicated otherwise.

The securities offered pursuant to the Offering have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for the sale of securities in the United States.

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.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles