Gowest Gold has entered a partnership with PGB Timmins Holdings LP, an investment firm controlled by Pandion Mine Finance LP, to raise U.S.$17.6 million toward the development of its Bradshaw gold deposit 42 kilometres northeast of Timmins.
Under the pre-paid forward gold purchase agreement, Gowest will get the money in four installments over the course of a year, in exchange for 65,805 ounces of gold, to be produced from Bradshaw and delivered to PGB.
PGB retains the right to reduce the amount of gold delivered in exchange for shares in the company.
“We are extremely pleased to have taken a major step forward by executing this financing agreement with Pandion, our newest partner, in the development of Bradshaw into the next new gold mine in Timmins,” Gowest president-CEO Greg Roman said in a Dec. 16 release.
“With the site surface development underway, we expect to begin underground development and provide a detailed timeline early in the new year.”
Currently, Bradshaw contains a National Instrument 43-101 compliant Indicated Resource estimated at 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 gold.
“We are delighted to have executed the definitive agreement with Gowest and look forward to providing the financing for the next new gold mine in Timmins,” Joe Archibald, founding partner of Pandion, said in the release.
Bradshaw is part of Gowest’s North Timmins Gold Project, a land package of over 100 square kilometres. Other exploration continues.
