GWA financingTORONTO, ONTARIO--(Marketwire - Dec. 8, 2011) -
NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) announces that it has engaged M Partners Inc. (the "Agent") in connection with a private placement, on a best efforts agency basis, of up to 9,523,810 flow-through units of the Company (each, a "Flow-Through Unit"), at a price of
.21 per Flow-Through Unit (the "Offering"). Each Flow-Through Unit will consist of one "flow-through" common share (a "Flow-Through Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one common share of the Company (a "Common Share "), at a price of
.30 per Common Share, for a period of 24 months from the closing date of the Offering.
In connection with the Offering, the Agent has been granted an option exercisable prior to the closing to arrange for the purchase of up to 2,381,000 additional Flow-Through Units on the same terms and conditions as under the Offering, for additional gross proceeds to the Company of up to $500,010.
Upon closing of the Offering, the Agent will receive a cash commission equal to 6% of the gross proceeds of the Offering and compensation warrants exercisable to acquire that number of Common Shares equal to 6% of the aggregate number of Flow-Through Units sold under the Offering, at a price of
.21 per Common Share, for period of 24 months following the closing date of the Offering.
Closing of the Offering is expected to occur on or about December 21, 2011 and is subject receipt to all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued in connection with the Offering will have a hold period expiring 4 months and 1 day from the closing date of the Offering. The net proceeds of the Offering will be used to advance the development of the Company's Frankfield gold project.