GWA.v .18 - 30 days without a down day Plus 3 hrs new DD
Little something I put together today with a few hard hours of DD.
Given:
1) TORONTO, ONTARIO--(Marketwired - June 29, 2016) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has entered into a negotiation agreement with Northern Sun Mining Corp. ("Northern") for the use of the Redstone Mill (the "Mill") located in Timmins, Ontario to process material from the Company's Bradshaw Gold Deposit ("Bradshaw").
2) Northern Sun suspended its custom milling operations at its Redstone Mill in early November 2015 with the former lessor.
Northern Sun Mining Corp, owner of the Redstone Mill, just went private in April 2016. Its now Owned 60% by Jien International Investment Limited (JIIL), established in Ontario in 2008, is a wholly-owned subsidiary of Jilin Jien Nickel Industry Co., Ltd (JJ), a listed company in the A-Share Market of the Shanghai Stock Exchange. Also 40% just purchased by Regal Silver Investments Ltd another large Chinese company. JJNIC financed Liberty Nickle with $30 million a few years back. Northern Sun Mining Corp is now a powerhouse as to depth of support.
3) Gowest Chinese owned financial partner FF Future Fortune owns 30% of Gowests shares and has financed millions to Gowest already.
4) Chinese business's stick together. Is it possible that this outcome was prepared from the beginning for a business relationship that includes either win win business contracts or even some degree of M&A? Surly the 2 would both benefit financially just from a tolling agreement and Nothern Sun could provide the CAPEX for the bulk sample in lieu of the future processing of the Gowest ore. Gowest could make delayed payments from the bulk sample revenues just like they have been alluding in Press releases. Another thought is Gowest could give up equity for a stake in the processing plant (a JV) ? Thinking this up as I go after doing the DD but I like it. At either rate it would benefit Northern Sun to get Gowest up and going. Nothern Suns mill is sitting idle. Gowest has an available upcoming project in Timmins large enough to fill the capacity once they finish the bulk sample.
5) Gowest has the autoclave for roasting the ore they purchased from the con mine. Could this be in the future plans for Northern Sun and Gowest as well, to pitch the central Autoclave to the Timmins mining community such as Goldcorp was talking about doing at their Annual business meeting?
6) The price of gold has to be motivating to both partys and actually the timing of Gowests permitting has worked out nice as it looks like they can now more easily raise money for progress.
7) Job List
Northern Sun Mining is currently looking to fill positions at the Redstone Mill, located 25 km southeast of South Porcupine, Ontario. The Company offers a competitive remuneration package including benefits and group RRSP options. Positions available include the following:
Forward Resumes to:Northern Sun Mining Corp.
8) Not many know this but Gowest is a mining camp in its infancy. Checkmate said long ago and its going to play out!
I predict 31 days of Gowest trading without a down day.
Checkmate28
