Source: Gowest Gold Ltd.
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Gowest Gold (GWA) has announced a $19 million investment from Greenwater Investment Hong Kong Limited
  • Greenwater has agreed to purchase on a private placement basis $7.5M in promissory notes and up to an aggregate of 88,461,358 units of Gowest for up to $11,500,000
  • Funds raised will be used to restart mining activities at its Bradshaw Gold Deposit in Ontario
  • Gowest is a Canadian gold exploration and development company
  • Gowest Gold Ltd. (GWA) opened trading at C$0.125 per share

Gowest Gold (GWA) has announced a $19 million investment from Greenwater Investment Hong Kong Limited.

Greenwater has agreed to purchase on a private placement basis $7.5M in promissory notes and up to an aggregate of 88,461,358 units of Gowest for up to $11,500,000. Together with the promissory notes, Gowest will raise aggregate gross proceeds of $19,000,000. 

C. Fraser Elliott, Gowest Chairman commented on the transaction.

“Our approval of this financing transaction follows an exhaustive search and evaluation of potential sources of capital undertaken by our management team and board of directors over the past several months. This transaction will provide us the opportunity to restart operations at Bradshaw and advance our ambitious development plans for the project for the benefit of all of our stakeholders.”

Dan Gagnon, President and Chief Executive Officer of Gowest added, 

“Today’s announcement is great news for Gowest and its shareholders. This investment will enable Gowest to restart mining activities at Bradshaw and continue to move towards production. We anticipate this year will be important for our growth, as we also plan to expand our geological resources and reserves through additional exploration. We appreciate Greenwater’s significant investment and continued commitment to our efforts to restart our operations at Bradshaw and to accelerate its further development and expansion.”

The completion of the unit offering is conditional upon the receipt of shareholder approval. The offering will close in multiple tranches. The first tranche of the Unit Offering, in the amount of $3,500,000, will be completed within five business days following the receipt of shareholder approval. The additional $8,000,000 in units will be issued within a period of three months.

Each unit will consist of one common share and one common share purchase warrant. Each Warrant will be exercisable to purchase one additional common share of Gowest for a period of two years, at a price of $0.16 per unit during the first 12-month period and $0.17 per unit during the second 12-month period.

The completion of the offering remains subject to TSXV approval. 

Greenwater is an investment company incorporated under the laws of Hong Kong, with its head office located in Wan Chai, Hong Kong.

Greenwater currently holds 25,140,774 common shares of Gowest, representing approximately 16 per cent of the outstanding common shares of the corporation. Following the completion of the transaction, Greenwater will hold 171,294,619 common shares representing approximately 56.73 per cent of the outstanding common shares of the Corporation.

The proceeds of the offering will be principally used by the Corporation for the continued development of its wholly-owned Bradshaw Gold Deposit on the Frankfield Property, part of the corporation’s North Timmins Gold Project.

All of the securities issuable in connection with the offering will be subject to a hold period expiring four months and one day after the date of issuance.

Gowest is a Canadian gold exploration and development company focused on delineating and developing its Bradshaw Gold Deposit. Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package.

Gowest Gold Ltd. (GWA) opened trading at C$0.125 per share.

More From The Market Herald
Barrick Gold - CEO, Mark Bristow

" Barrick Gold (TSX:ABX) announces $70M investment in Tanzanian communities

Barrick Gold Corporation (ABX) has announced a $70 million investment to support the development and infrastructure of Tanzanian mine communities.

" Durango (TSXV:DGO) closes $515K flow through financing

Durango Resources (DGO) has closed its private placement for gross proceeds of C$515,500.
Tocvan Ventures (CSE:TOC) - CEO, Brodie Sutherland.

" Colibri (CBI) and Tocvan (TOC) report gold discoveries at Pilar Gold & Silver Project

Tocvan Ventures (TOC) and Colibri Resource Corp (CBI) have received drilling results from the Pilar Project.

" Pure Gold Mining (TSXV:PGM) closes $31M non-brokered private placement

Pure Gold Mining (PGM) has closed the final tranche of a non-brokered private placement for total gross proceeds of C$31,086,144.