$8 million investment in Gowest Gold
Brings Bradshaw Gold Deposit closer to production
Gowest Gold Ltd.'s efforts to bring its Bradshaw Gold Deposit into production receved a major boost with an $8 million private placement investment from Fortune Holding Lt. in exchange for 17,777,777 common shares at $0.45 per share.
Gowest will use the funds to complete its bulk sample at the Bradshaw Gold deposit and move towards full production.
“We are extremely pleased to have Fortune Future express their support for our company and our team through this further investment, as well as for the support that our shareholders have shown in their approval of this transaction,” said Greg Romain, Gowest’s President and CEO. “With these funds, we expect to be able to complete the bulk sample at the Bradshaw Gold deposit as we continue to progress towards our goal of building the next new gold mine in the Timmins camp."
Fortune Holding now control or directs of 26,277,777 common shares or 43.3% of the issued and outstanding common shares of Gowest. Fortune holds no additional options, warrants or other securities convertible into or exchangeable for common shares of Gowest.
The Bradshaw property is located about 15 kilometres north of the Kidd Operations mine site with an access road running east off Highway 655.
Last year Gowest signed an agreement with QMX Gold Corporation to process Gowest's gold ore from the bulk sample program and production from the Bradshaw Deposit at the Aurbel Mill in Val d’Or.
Fortune Holding now has the right to appoint, and to have nominated by the Company for election at each annual meeting of shareholders, that number of directors of the Company as will represent a majority of the board of directors, so long as Fortune holds greater than 30% of the outstanding common shares of the Company.
A copy of the early warning report filed by Fortune in connection with completion of the Private Placement is available under Gowest’s profile on SEDAR (www.sedar.com).
Gowest 's Bradshaw Gold Deposit is located on the Frankfield Property, part of the Corporation’s North Timmins Gold Project (NTGP). The Bradshaw Gold Deposit contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au. It has 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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