Gowest Gold announced it has raised $2.5 million by issuing shares of the company, with all proceeds slated to go toward exploration at its Timmins-area gold project.
On Nov. 10, the company said it closed a non-brokered private placement of 12,225,000 flow-through common shares of the corporation and 325,000 non-flow-through common shares of the corporation, at a price of $0.20 per share, for aggregate gross proceeds of $2,510,000.
Surface development work will begin in preparation for a bulk sample to be taken at Gowest’s Bradshaw gold deposit and exploration work on the company’s North Timmins gold project.
The company had earlier announced an agreement with Pandion Mine Finance LP to raise US$17.6 million in financing for the project.
The North Timmins gold project is located 42 kilometres northeast of Timmins.
Bradshaw contains an indicated resource estimated at 2.1 million tonnes, grading 6.19 grams per tonne of gold, containing 422 thousand oucnes of gold, and an inferred resource of 3.6 million tonnes grading 6.47 grams per tonne of gold, containing 755 thousand ounces of gold.
Bradshaw further contains mineral reserves totalling 1.8 million tonnes grading 4.82 grams per tonne of gold for 277 thousand ounces of gold.
