Gowest Gold Closes Final Tranche of Private Placement
TORONTO, ONTARIO--(Marketwired - Dec. 19, 2017) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Gowest Gold Ltd. (TSX VENTURE:GWA) (the "Company") is pleased to announce the final tranche closing of a
previously announced non-brokered private placement for gross proceeds of $1,383,140. In connection with the final tranche
closing, the Company issued 350,000 common share units at a price of $0.16 per unit for $56,000 and 7,373,000 flow-through units
at a price of $0.18 per unit for $1,327,140. Each flow-through unit consists of one common share in the capital of the
Company issued on a "flow through" basis pursuant to the Income Tax Act (Canada) and one half (1/2) of a common share
purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise
price of $0.25 per share for a period of 24 months from the date of issuance. The closing is subject to final acceptance by the
TSX Venture Exchange of the private placement.
Together with the first and second tranches of the private placement, the Company issued a total of 28,551,173 flow-through
units and 5,525,000 common share units for aggregate gross proceeds of $6,023,211.
The proceeds of the private placement, along with the remainder of the previously announced Pre-Paid Forward Gold Purchase
Agreement (the "Agreement") between PGB Timmins Holdings LP (an investment vehicle controlled by Pandion Mine
Finance, LP) and Gowest will be used to fund the exploration programs of the Company's North Timmins Gold Project, the ongoing
underground development of the Company's Bradshaw mine and for general working capital purposes. (For further detail regarding
the Pandion financing, see Gowest press release dated Dec. 16, 2016.)
In connection with the final tranche closing of the private placement, the Company paid finders' fees consisting of $71,552 in
cash and 398,180 non-transferable compensation warrants. Each compensation warrant entitles its holder to purchase one common
share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months after the closing
date.
All securities issued in connection with the final tranche closing of the private placement are subject to a four-month hold
period pursuant to the applicable securities laws with an expiry date of April 19, 2018.
Please visit our website ( www.gowestgold.com
) for photographs of the ongoing development at Bradshaw and to review our latest corporate presentation.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned
Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest
is exploring additional gold targets on its +100-square-kilometre NTGP land package and continues to evaluate the area, which is
part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 Indicated Resource
estimated at 2.1 million tonnes ("t") grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an
Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study
produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive
of Mineral Reserves) in the probable category, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz,
totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Jeremy Niemi, P.Geo., Gowest's Director
of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument
43-101 standards.
Forward-Looking Statements
This news release may contain certain "forward looking statements". Forward-looking statements involve known and unknown
risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.