Gowest Gold Ltd. (TSX-V:GWA) is pleased to announced the second tranche closing (see Gowest new release of Oct. 31, 2017) of a previously announced non-brokered private placement for gross proceeds of $1,428,150.60. The Company issued 7,924,170 flow-through units at a price of $0.18 per unit. Each flow-through unit consists of one common share in the capital of the Company issued on a “flow through” basis pursuant to the Income Tax Act (Canada) and one half of a common share purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement. 

The proceeds of the Offering, along with the remainder of the previously announced Pre-Paid Forward Gold Purchase Agreement between PGB Timmins Holdings LP (an investment vehicle controlled by Pandion Mine Finance, LP) and Gowest will be used to fund the exploration programs of the Company’s North Timmins Gold Project, the ongoing underground development of the Company’s Bradshaw mine and for general working capital purposes. (For further detail regarding the Pandion financing, see Gowest press release dated Dec. 16, 2016.) In connection with the closing of this second tranche of the private placement, the Company paid finders’ fees consisting of $89,289.04 (plus applicable taxes) in cash and 331,667 non-transferable compensation warrants. Each compensation warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months after the closing date. 

All securities issued in connection with the second tranche closing of the private placement are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of March 16, 2018.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit, on the Frankfield Property, part of the Corporation’s North Timmins Gold Project. 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 grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces 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, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.