Gowest Gold Ltd. (TSX-V: GWA) announced that it has entered into a bridge loan agreement with Lush Land Investment Canada Inc. for a loan facility of up to C$1.6 million. The Company has received the first $1.0 million under the Agreement, and the balance is expected to be advanced before the end of the month.
The purpose of the Agreement is to enable Gowest to continue to move ahead with its Advanced Exploration Bulk Sample program at the Company’s 100% owned Bradshaw Gold Deposit while the Company continues to work towards a significantly larger financing. Gowest has started initial discussions with interested parties regarding one or more financings to raise sufficient funds to complete the bulk sample and take Bradshaw to commercial production, targeted for 2021.
Greg Romain, President and CEO of Gowest, said, “This loan provides us with the necessary support we need to continue to advance Bradshaw while we press ahead towards raising the additional capital required to complete the bulk sample beginning in Q3 and move Bradshaw into production.
Meirong Yuan, a director of Gowest, is also a director of Lush Land. The bridge loan is for a term of one-year and carries an interest rate of 10 percent per annum. The loan may be repaid at any time prior to maturity without penalty.
In light of the COVID-19 situation and to ensure the safety of all of the Company’s employees and contractors, all appropriate health and safety precautions have been instituted both at Bradshaw as well as at the Company’s offices in Timmins and Toronto.
Meanwhile, the Company has plans in place to ensure that the first gold-bearing ore from the bulk sample and stored on surface at the site will be trucked to Northern Sun’s Redstone Mill (see Gowest release dated January 17, 2020) in time for processing, which is currently expected to begin in Q3 2020.
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 Company’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.
The technical information in this news release has been reviewed and approved by Yungang Wu, P.Geo., Gowest’s Senior Geologist, who is the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.
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We acknowledge the [financial] support of the Government of Canada.