Gowest Engages Cementation
Provides Update on the Bradshaw Development
TORONTO, ONTARIO--(Marketwired - March 3, 2017) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has engaged Cementation Canada Inc. ("Cementation") as the mining contractor to assist in the underground development of the Bradshaw Gold Deposit ("Bradshaw") as part of the Company's Advanced Exploration - Bulk Sample program.
Greg Romain said, "We are extremely pleased to have Cementation, with their wealth of mine development knowledge and focus on safety, as a key partner in developing Bradshaw, the next new mine in Timmins."
Roy Slack, President of Cementation Canada Inc. also commented, "All of us at Cementation are pleased to be partnering with Gowest on the Bradshaw project. It is an exciting mine development with substantial potential."
Bradshaw Development Update:
Gowest is currently working on site development and construction of the water treatment ponds, which are expected to be completed in mid-April, with portal work beginning immediately afterwards. Please see Bradshaw Development Timeline (http://media3.marketwire.com/docs/gwa0303timeline.pdf
The Company has ordered an ore-sorter from Steinert US, which is to be used to sharply reduce handling costs and increase gold grades of ore sent for processing. Delivery of the unit is expected mid-year 2017.
The Company also announces the extension of its previously announced non-binding letter of intent with Northern Sun Mining Corp. ("Northern Sun") relating to the creation of a 50/50 joint venture corporation that will own and operate the Redstone Mill. It is now anticipated that definitive documentation in respect of the transaction will be completed on or prior to April 14, 2017, and closing will occur as soon as practicable thereafter. While negotiations are progressing positively, given time constraints on both the Company and Northern Sun, the parties require additional time to complete due diligence and complete definitive documentation. For additional details concerning the proposed joint venture, please refer to the Company's press release dated January 23, 2017. Gowest Gold: Funding Update
PGB Funds Initial Tranche under Pre-Paid Forward Gold Purchase Agreement
TORONTO, ONTARIO--(Marketwired - Feb. 2, 2017) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that, today, PGB Timmins Holdings LP ("PGB") funded the initial tranche of US$5,600,000 pursuant to the previously announced Pre-Paid Forward Gold Purchase Agreement (the "Agreement") entered into between PGB and Gowest on December 16, 2016. For further details concerning the Agreement, please see Gowest's press release dated December 16, 2016. PGB is an investment vehicle controlled by Pandion Mine Finance, LP.
The proceeds from the initial tranche will be used by Gowest principally to fund the development of its 100% owned Bradshaw Gold Deposit, as well as for general and administrative costs and the payment of transaction fees and expenses relating to the Agreement.
About Pandion Mine Finance, LP
Pandion is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.
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 Company'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 g/t Au containing 422 thousand 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 Probable Mineral Reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au