Announces Up to $19 M Investment by Greenwater Investment Not for distribution to United States newswire services or for dissemination in the United States
Funds to be Used to Restart Operations at Bradshaw Gold Deposit
TORONTO, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Gowest Gold Ltd. (“Gowest” or the “Corporation”) (TSX VENTURE: GWA) announced today that Greenwater Investment Hong Kong Limited (“Greenwater”) has agreed to purchase from Gowest, on a private placement basis, pursuant to a subscription agreement between the parties dated January 24, 2022:
- promissory notes in an aggregate principal amount of $7,500,000 (the “Promissory Notes”), for an aggregate purchase price of $7,500,000 (the “Promissory Note Offering”), which shall be convertible, subject to the receipt of requisite shareholder approval, into Units (as defined below); and,
- subject to the receipt of requisite shareholder approval, up to an aggregate of 88,461,358 units of the Corporation (the “Units”), at an issue price of $0.13 per Unit (the “Issue Price”), for an aggregate purchase price of up to $11,500,000 (the “Unit Offering” and, together with the Promissory Note Offering, the “Offering”).
Assuming the completion of the Offering in full, the Corporation will raise aggregate gross proceeds of $19,000,000. Additional funds may be raised subsequently through the exercise of the Warrants issued pursuant to the Offering.
C. Fraser Elliott, Gowest Chairman, stated, “Our approval of this financing transaction follows an exhaustive search and evaluation of potential sources of capital undertaken by our management team and board of directors over the past several months. This transaction will provide us the opportunity to restart operations at Bradshaw and advance our ambitious development plans for the project for the benefit of all of our stakeholders.”
Dan Gagnon, President and Chief Executive Officer of Gowest, added, “Today’s announcement is great news for Gowest and its shareholders. This investment will enable Gowest to restart mining activities at Bradshaw and continue to move towards production. We anticipate this year will be important for our growth, as we also plan to expand our geological resources and reserves through additional exploration. We appreciate Greenwater’s significant investment and continued commitment to our efforts to restart our operations at Bradshaw and to accelerate its further development and expansion.”
All dollar amounts referred to in this press release are in Canadian Dollars, except where expressly indicated otherwise.
The conversion of the Promissory Notes and the completion of the Unit Offering is conditional upon the receipt of Shareholder Approval, as defined and described in detail below under the heading “Minority Approval of Offering.”
https://www.globenewswire.com/news-release/2022/01/24/2371704/0/en/Gowest-Announces-Up-to-19-Million-Investment-by-Greenwater-Investment-Hong-Kong-Limited.html