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Gowest Gold Ltd. Closes $2.59 Million Private Placement -
DEC 22, 2011 - 16:41 ET
TORONTO, ONTARIO--(Marketwire - Dec. 22, 2011) -
Gowest Gold Ltd.
("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF)
announces that it has closed its previously announced private
placement of units ("Units") of the Company (the "Offering").
Pursuant to the Offering, after the exercise of the agent's
option in full and the issuance of an additional 453,694 Units,
the Company issued and sold a total of 13,611,589 Units, at a
price of $0.19 per Unit, for gross proceeds of $2,586,201.
Each Unit is comprised of one common share of the Company issued
as a "flow-through share" (as defined in subsection 66(15)
of the Income Tax Act (Canada)) and one-half of one common share
purchase warrant (each whole common share purchase warrant, a
"Warrant"). Each Warrant is exercisable to acquire one common
share of the Company at a price of $0.30 any time prior
to 5:00 p.m. (Toronto time) on December 22, 2013.
M Partners Inc. acted as agent (the "Agent") in connection with
the Offering and, together with certain selling group members,
was paid a cash commission equal to $161,931.
In addition, the Company issued compensation warrants to the
Agent and certain selling group members exercisable to purchase
a total of 816,695 common shares of the Company, at a price of
$0.19 per share, for a period of 24 months following the closing.
The securities issued in connection with the Offering have a hold
period expiring April 23, 2012. The net proceeds of the Offering
will be used to advance the Company's Frankfield gold project.
About Gowest
Gowest is a Canadian gold exploration and development company
focused on the delineation and development of its 100% owned
Frankfield East gold deposit. Gowest is exploring additional
gold targets on the Frankfield land package and continuing to
evaluate acquisition targets in the vicinity of the Frankfield
project area, part of the prolific Timmins, Ontario gold camp.
Forward-looking statements
This news release contains certain "forward looking statements". Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gowest Gold Ltd.
Greg Romain
President & CEO
(416) 363-1210
info@gowestgold.com
http://www.gowestgold.com/op_frankfield-overview.html
http://cnrp.marketwire.com/client/gowest/n/release.jsp?actionFor=1549772
Gowest Gold Ltd (GWA) fiat$0.25
? 0.0 (0.00%)
Volume: 166,900 @ 2:35:35 PM ET
Bid Ask Day's Range
0.255 0.265 0.25 - 0.265
TSX:GWA Detailed Quote
This might help getting things going.
On the potential value for a share. A lot (if not all) came from the concept discussed by Michael Ballanger's article in April 2010 (http://www.theaureport.com/pub/na/6054)
Below is a procedure (one of the many procedures) for estimating a $/Share value of an exploration mining stock . It is a quick & dirty one, and one that an investor "on the outside" can use. The math is pretty simple.
A = Quantity of company shares - use 113,300,000
B = Recoverable ounces estimated; Lets assume 1,200,000
C = B / A = 1,200,000 / 113,300,000 = 0.0106 ounces of Gold in the ground per Share
D = Market price per ounces that a major has in its model; Lets assume US$ 1,000 (1).
E = C x D = 0.0115 x 1,000 = Value of the Gold in the ground per share = US$ 10.60
F = Percentage of the value in the ground that a major would pay to buy out. Lets use 10% (2)
G = E x F = US$ 11.5 x 10% = $1.06 /share
(1) This is an estimated figure that the user thinks gold will average over the next 10-20 years. Using today's spot market is probably unrealistic.
(2) See MB’s article in April 2010 (http://www.theaureport.com/pub/na/6054) Percentage ranged from 10% to 40%. Using 10% essentially means that we are discounting the value in the ground by 90% to cover various risks, eg: the cost of building the mine, the variability of the selling price and the cost of extracting and processing the ore over 10-20 years, and the many other unknowns that would impact the cash flow stream over the years, and of course the inaccuracies of the other data that goes into the discounted cash flow model and the selection of the discount percentage to use.
Of course this is a mathematical process. Just remember there is no adjustment factor that can be incorporated that accommodates the market's positive reaction to a "glory Hole" or negative reaction to a couple of "dry holes" where expectations for the drilling is high.
THIS IS JUST MY OPINION, USE YOUR OWN ASSUMPTIONS ON OUNCES REPORTED, MARKET PRICE, AND PERCENTAGE THAT A MAJOR WOULD BE WILLING TO PAY.
by Douginil thanks good info 
checkmate28 welcome to Gowest Amalgamated Resources Ltd. (TSX:GWA
good to see you at GWA
thanks for good info;
Things are about to get started here I believe. News of NI43-101 compliant 1 million oz gold at grades avg 6 - 7 grams per ton coming this month. 1 million ounces, thats over a billion $ deposit for a market cap of 30 million now. Thats value. Their not looking for Gold, they have it. PPS has been drifting as the 3rd party is late with the report I believe and people are tired of waiting. Not many sellers but not many bids either.
They ought to be worth $90 in market cap per ounce on the low end, (over .80/share) for a 1,000,000 oz Gold insitu value, with avg grades over 6 grams per tonne, open for expansion with good infrastructure and coming plans for producing 100,000oz/yr. Local comparable explorers get from $90 to $135 in MC per insitu OZ. They've been hitting consistant grades on nearly every hole. Excellent management worked with the local majors for many years. Feasibility study projected for early fall plus larger resource numbers still. Their in Timmons ON so they can ship the ore anywhere local via railways and infrastructure that is already there. This is a straight forward operation. 1 million ounces with those grades will make a story.
This is the first new discovery in Timmons in a long time and there is a lot of talk from the locals. I know this. This has the potential to be a 2-3 million oz company and they've alredy been talking with local smelters to ship ore for cash flow soon, while they plan and build a mine. Infill drilling could move 1/2 million Inferred to M & I categories. They are drilling to 900 meters with high grades lower. Local Lakeshore Gold is drilling over 1500 meters at their flagship property in Timmons as well.
Call Rory Quinn company IR. He answers the phone.
great article here. Text below.
http://www.resourceintelligence.net/gowest%E2%80%99s-frankfield-gold-project-on-growth-trajectory-updated-43-101-resource-estimate-expected-in-march/16777
Website: http://www.gowestgold.com
Gowest big move after lunch...
GoWest might be ready to breakout here...
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