Gowest Announces $1.0 Million Debt Financing
TORONTO, June 16, 2021 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE: GWA) announced today that it has entered into a loan agreement with Lush Land Investment Canada Inc. (“Lush Land”) in respect of a bridge loan in the principal amount of $1,000,000. The proceeds of the loan will be used by Gowest for general corporate purposes. Meirong Yuan, a director of Gowest, is also a director of Lush Land.
The bridge loan matures on June 30, 2022. Interest on the daily outstanding principal balance, from time to time, shall accrue daily and be calculated and payable periodically on each of September 15, 2021, December 15, 2021, March 15, 2022 and June 30, 2022, in arrears, at the rate of 18% per annum. The bridge loan may be repaid at any time prior to maturity without penalty.
C. Fraser Elliott, Chairman, commented “the loan represents a step in an anticipated refinancing of the Corporation.”
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.
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