Not for distribution to United States newswire services or for dissemination in the United States
TORONTO, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Gowest Gold Ltd. (“ Gowest ” or the “ Company ”) (TSX VENTURE: GWA) announced today that it has completed the first tranche of a private placement, on a non-brokered basis, of 2,666,903 flow-through units of the Company (the “ FT Units ”), at a price of $0.39 per FT Unit, for gross proceeds of $1,040,092.17 (the “ Private Placement ”). Each FT Unit comprised one common share and one-half (1/2) of one common share purchase warrant (each whole common share purchase warrant, a “ Warrant ”) issued on a flow-through basis, with each Warrant being exercisable to acquire one common share of the Company at a price of $0.45 until December 31, 2022. The common shares underlying the Warrants will not be issued as flow-through shares.
The proceeds of the Private Placement will be used by the Company for the continued development of its 100% owned Bradshaw Gold Deposit and for “Canadian exploration expenses” (within the meaning of the Income Tax Act (Canada)) in connection with the mineral exploration programs of the Company.