Gowest Gold has announced its plans to raise $6 million to continue advancing its Bradshaw gold deposit near Timmins.
In a Dec. 10 news release, the Toronto-based company said it would issue a non-brokered private placement for 20 million units of the company, at a price of 20 cents per unit, for gross proceeds of up to $4 million, and up to 9,090,910 flow-through (FT) units, at a price of 22 cents per FT unit, for gross proceeds of up to $2 million.
The company said the private placement may close in one or more tranches, with the transaction expected to be closed by Dec. 23. Proceeds will be used for Bradshaw’s development and for general working capital purposes.
Located 32 kilometres northeast of Timmins, the Bradshaw deposit contains a National Instrument 43‐101 indicated resource estimate of 2.1 million tonnes grading 6.19 grams per tonne gold, containing 422,000 ounces gold, and an inferred resource of 3.6 million tonnes grading 6.47 grams per tonne gold, containing 755,000 ounces of gold.
The company has been steadily working on development at Bradshaw through 2019.
In March, Gowest raised $2 million through a private placement, and raised an additional $8 million, thanks to an investment by Fortune Future Holdings Ltd., which was completed in June.
Also in June, Gowest conducted a six-hole, 1,000-metre drill program on the property, designed to provide infill detail on stopes to be mined in the bulk sample area and to test recently identified, new high-grade gold zones to the north of the main deposit.
In August, Gowest reached a settlement agreement with PGB Timmins Holdings LP regarding the alleged default of a 2016 financing agreement.
Then in October, the company made some changes to its board of directors, bidding adieu to two long-time members, and bringing on Parviz Farsangi, an experienced mining engineer who has worked for Canadian Royalties, Vale and Wallbridge Mining.