- Gowest Gold (TSXV:GWA) has entered into a bridge loan agreement with Lush Land Investment Canada for a loan facility of up to C$2.5 million
- The agreement will allow Gowest to move ahead with its advanced exploration bulk sample program at the Bradshaw Gold Deposit
- In the meantime, more significant financing is being pursued ahead of commercial production at the Bradshaw deposit, which is planned for next year
- So far, $1 million has been received under the facility with Lush Land Investment Canada
- Gowest Gold (GWA) is currently down 3.23 per cent and is trading at 30 cents per share
Gowest Gold (TSXV:GWA) has entered into a bridge loan agreement with Lush Land Investment Canada for a loan facility of up to C$2.5 million.
The agreement has been designed to enable the company to move ahead with an advanced exploration bulk sample program at its wholly owned Bradshaw gold deposit.
So far, $1 million has been received under the facility, with the remainder due by the end of July this year.
At the same time, Gowest is progressing negotiations regarding a significantly larger financing to complete the bulk sample and bring the Bradshaw deposit to production next year.
Greg Romain, President and CEO of Gowest Gold, commented on the financing.
"This additional loan from Lush Land provides us with the ongoing support we need to advance Bradshaw while we press ahead towards raising the additional capital required to complete the bulk sample beginning in the third quarter, and move Bradshaw into production.
"The company looks forward to creating new jobs for the surrounding communities at the mine and helping to bring back jobs to the Redstone Mill," he added.
The Bradshaw deposit sits within Gowest's North Timmins Gold Project, located in the Abitibi Greenstone belt of Ontario and roughly 32 kilometres north-northeast of the city of Timmins.
To date, over 172 million ounces of gold have been produced from the Abitibi district, representing almost half of Canada’s total gold production.
In early June 2015, Gowest announced the results of a pre-feasibility study at the Bradshaw deposit.
According to these results, the deposit hosts an indicated resource of 2,121,866 tonnes grading 6.19 grams per tonne of gold, as well as an inferred resource of 3.63 million tonnes grading at 6.47 grams per tonne of gold.
Gowest Gold (GWA) is currently down 3.23 per cent to $0.30 per share at 3:14pm EDT.