Gowest Provides Update on Previously Announced Investment by Greenwater Investment Hong Kong Limited
11 March 2022 - 8:50AM
Gowest Gold Ltd. (“
Gowest” or the
“
Corporation”) (TSX VENTURE: GWA) announced today
that it has completed the issuance and sale to Greenwater
Investment Hong Kong Limited (“
Greenwater”) of
promissory notes in an aggregate principal amount of $7,500,000
(the “
Promissory Notes”), for an aggregate
purchase price of $7,500,000.
The issuance and sale of the Promissory Notes
form part of a larger financing initiative of the Corporation
pursuant to which the Corporation may raise aggregate gross
proceeds of up to $19,000,000 (the “Offering”),
subject to the terms and conditions of the subscription agreement
between the Corporation and Greenwater related to the Offering. For
further details concerning the Promissory Notes and the Offering,
please see Gowest news release dated January 24, 2022.
Dan Gagnon, President and CEO of Gowest stated,
“The financing continues to demonstrate the support we have from
our existing shareholders as we proceed with the development of the
Bradshaw mine and surrounding properties.”
Subject to the receipt of requisite shareholder
approval, the Promissory Notes will automatically convert into
units of the Corporation (“Units”) at a conversion
price of $0.13 per Unit. Assuming conversion of the Promissory
Notes, an aggregate of 57,692,307 Units will be issued by the
Corporation. Each Unit will comprise one common share of the
Corporation and one common share purchase warrant (a
“Warrant”), with each Warrant being exercisable to
purchase one additional common share of the Corporation for a
period of two years following the receipt of shareholder approval,
at a price of $0.16 per Unit during the first 12-month period
following the receipt of shareholder approval and at a price of
$0.17 per Unit during the second 12-month period following the
receipt of shareholder approval.
The proceeds of the Offering will be principally
used by the Corporation for the continued development of
Bradshaw.
The securities offered have not been registered
under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons absent registration or an
applicable exemption from registration requirements. This release
does not constitute an offer for the sale of securities in the
United States.
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. The Offering remains
subject to the receipt of final approval from the TSX Venture
Exchange.
Update on Shareholder
Meeting
The Corporation has called a special meeting of
the shareholders of the Corporation (the
“Meeting”), scheduled to be held on March 31,
2022, for the purpose of obtaining shareholder approval of certain
aspects of the Offering, including the conversion of the Promissory
Notes into Units in accordance with their terms.
Further information regarding the Offering can
be found in the Management Information Circular of the Corporation
dated February 18, 2022 and prepared in connection with the
Meeting. The management information circular is available for
review under the Corporation’s SEDAR profile at www.sedar.com and
on the Corporation’s website at www.gowestgold.com. All
shareholders are urged to read the Management Information Circular
and vote at the Meeting.
About Gowest
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 Corporation’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.
Forward-Looking Statements
Certain statements in this release constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements in this press release
include, without limitation, statements relating to: the Offering;
the proposed use of proceeds of the Offering; and the special
meeting of the shareholders of the Corporation. Words such as
“may”, “would”, “could”, “should”, “will”, “anticipate”, “believe”,
“plan”, “expect”, “intend”, “potential” and similar expressions may
be used to identify these forward-looking statements although not
all forward-looking statements contain such words.
Forward-looking statements involve significant
risks, uncertainties and assumptions. Many factors could cause
actual results, performance or achievements to be materially
different from any future results, performance or achievements that
may be expressed or implied by such forward-looking statements,
including risks associated with the Offering and financing
transactions generally, such as the failure to satisfy the closing
conditions contained in the subscription agreement, the absence of
material adverse changes or other events which may give Greenwater
the basis on which to terminate the subscription agreement, and the
ability of the Corporation to complete and mail the information
circular in respect of the Meeting and hold the Meeting within the
time frames indicated. Additional risk factors are also set forth
in the Corporation’s management’s discussion and analysis and other
filings available via the System for Electronic Document Analysis
and Retrieval (SEDAR) under the Corporation’s profile at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or
achievements may vary materially from those expressed or implied by
this press release. These factors should be considered carefully
and reader should not place undue reliance on the forward-looking
statements. These forward-looking statements are made as of the
date of this press release and, other than as required by law, the
Corporation does not intend to or assume any obligation to update
or revise these forward-looking statements, whether as a result of
new information, future events or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information please
contact: |
|
|
Dan Gagnon |
Greg Taylor |
President & CEO |
Investor Relations |
Tel: (416) 363-1210 |
Tel: (416) 605-5120 |
Email: info@gowestgold.com |
Email: gregt@gowestgold.com |
Gowest Gold (TSXV:GWA)
Historical Stock Chart
From Sep 2024 to Oct 2024
Gowest Gold (TSXV:GWA)
Historical Stock Chart
From Oct 2023 to Oct 2024