Timmins’ next would-be miner, Gowest Gold, has secured the $25 million it needs to go back underground and restart its Bradshaw gold deposit, north of the city.
Company management said in an April 17 news release that it has completed a private placement financing package of $15 million combined with the sale of $10 million in promissory notes to Lush Land Investment Canada, a key project investor.
Lush Land will increase its shareholder stake in Gowest from 9.1 per cent to 24.7 per cent.
The funds are earmarked for development and a planned restart of the Bradshaw mining operation, 32 kilometres northeast of the city. It’s part of the company’s larger North Timmins Gold Project, covering more than 10,900 hectares.
“This is by far the largest financing Gowest has ever completed,” said C. Fraser Elliott, Gowest chair, in the release.
“I would like to thank all of our investors for their ongoing support and for their trust in the board and management team as we work together, not only to build the mine but also, with the longer-term goal of developing a strong mining and production infrastructure in the region.”
Dumas Contracting, a local mine building outfit, was selected in February to resume underground development work.
“We have already taken significant steps toward bringing the Bradshaw Gold Deposit into production and preparing to accelerate the development of the rest of our promising gold portfolio,” said Dan Gagnon, Gowest’s president-CEO. “I look forward to providing regular updates to all investors as we drive forward and begin producing gold in the coming months.”
The company gave no timelines on a return to production in the release, but management said in February that Dumas was to be on the site this month to resume development work.