Gowest Gold has raised $8 million in financing for development of its Bradshaw property east of Timmins.
The company announced on April 9 that Fortune Future Holdings Ltd., a Chinese investment firm, has agreed to purchase common shares of the company as part of a non-brokered private placement.
The news comes following a late March announcement that Gowest was working on a “significant investment” that would allow the company to proceed with a bulk sample program and ongoing development at Bradshaw.
Located about 32 kilometres northeast of Timmins, Bradshaw contains a National Instrument 43‐101 indicated resource estimated at 2.1 million tonnes grading 6.19 grams per tonne gold, containing 422,000 ounces of gold, and an inferred resource of 3.6 million tonnes grading 6.47 grams per tonne gold, containing 755,000 ounces of gold.
Details of the Fortune Future agreement are available here.
The Chinese firm first invested in the company in 2014, giving it more than 10 per cent ownership. Following the full completion of this most recent deal, Fortune will hold 43.3 per cent of Gowest’s outstanding shares and earns a right to appoint enough directors to make up the majority of Gowest’s board.
The agreement is subject to shareholder approval and industry protocols.
Gowest said proceeds from the financing agreement would be used to continue development at Bradshaw.
However, the company will require additional funds to move Bradshaw into commercial production, and Gowest is continuing to look for other financing opportunities.