Gowest Announces New $1-Million Debt Financing
TORONTO, Nov. 05, 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 for working capital. The loan matures on October 31, 2022. Interest on the outstanding principal balance shall accrue daily and be calculated, in arrears, at the rate of 10% per annum. The bridge loan may be repaid at any time prior to maturity without penalty. Meirong Yuan, a director of Gowest, holds 25% of Lush Land.
Noted Dan Gagnon, Gowest’s President and Chief Executive Officer, “This loan is assisting us as we finalize our review of the revised mining and exploration plans, all in preparation for a near-term restart of operations at our wholly-owned Bradshaw Gold Deposit.”
Gowest is a Canadian gold exploration and development company focused on delineating and developing 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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