- Gowest Gold (GWA) has closed its previously-announced non-brokered private placement of 3,375,000 flow-through common shares
- The company issued the shares at an issue price of $0.08 per share for gross proceeds of $270,000
- Gowest has also issued 1,112,875 shares to settle an aggregate of $89,030 of indebtedness at a deemed price of $0.08 per share
- Gowest is a Canadian gold exploration and development company
- Gowest Gold Ltd. opened trading at $0.06
Gowest Gold (GWA) has closed its previously-announced non-brokered private placement of 3,375,000 flow-through common shares.
The company issued the shares at an issue price of $0.08 per share for gross proceeds of $270,000.
Gowest has also issued 1,112,875 shares to settle an aggregate of $89,030 of indebtedness at a deemed price of $0.08 per share to non-management directors of the company. That was in satisfaction of director fees owing and outstanding to such individuals as of October 31, 2022.
The company intends to use the gross proceeds of the offering to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act (Canada).
More specifically, it is anticipated that the gross proceeds from the offering will be used to expand the mineable resource at the Bradshaw Gold Deposit, as well as to further test other parts of the corporation’s North Timmins Gold Project area where notable gold has previously been intercepted.
This issuance of common shares for this debt settlement was made in order to preserve cash and improve the Company’s balance sheet.
“With the completion of these two transactions, we are a step closer to restarting Bradshaw and preparing to increase our gold resource both at the mine and at the other parts of our large and highly prospective NTGP area, beginning early in the new year,” said Dan Gagnon, President and Chief Executive Officer of Gowest.
Gowest is a Canadian gold exploration, and development company focused on the delineation and development of its 100-per-cent-owned Bradshaw Gold Deposit on the Frankfield Property, part of the company’s North Timmins Gold Project (NTGP).
Gowest Gold Ltd. opened trading at $0.06.
