Gowest Gold (TSXV: GWA) has received over $25 million in proceeds, which will be principally used for the continued development of the Bradshaw gold deposit, in Timmins, Ontario. This includes the planned restart of mining operations at Bradshaw, as well as for exploration at other areas comprising the corporation's North Timmins gold project and for general corporate purposes.
Gowest completed its offering of an aggregate of 150 million units of the corporation at an issue price of $0.10 per unit, for aggregate gross proceeds of $15 million. Additionally, the conversion of its previously issued promissory notes in a principal amount of $10 million held by Lush Land Investment Canada into units at a conversion price of $0.10 per unit.
In 2015, a prefeasibility study of Bradshaw highlighted $341 million gross revenue to operation, a sustaining capital cost of $21.4 million, and after tax net present value at a 5% discount of $29.2 million. The resource estimate from the time dictate; indicated resources 2.1 million tonnes grading 6.19 g/t gold and inferred resources of 3.6 million tonnes grading 6.47 g/t golf using a 3 g/t gold cut-off grade.
Gowest’s North Timmins gold project currently covers over 10,900 hectares in Evelyn, Gowan, Little, Prosser, Tully, and Wark Townships in the Timmins gold camp. This includes 26 unpatented mining claims held under joint venture with Transition Metals. The project is located approximately 32 km north-northeast of Timmins.
"This is by far the largest financing Gowest has ever completed,” said C. Fraser Elliott, Gowest chair.
To learn more, visit www.GowestGold.com.