Gowest Gold Ltd. Closes $2.59 Million Private Placement
December 22 2011 - 4:41PM
Marketwired
Gowest Gold Ltd. ("Gowest" or the "Company") (TSX
VENTURE:GWA)(OTCBB:GWSAF) announces that it has closed its
previously announced private placement of units ("Units") of the
Company (the "Offering"). Pursuant to the Offering, after the
exercise of the agent's option in full and the issuance of an
additional 453,694 Units, the Company issued and sold a total of
13,611,589 Units, at a price of $0.19 per Unit, for gross proceeds
of $2,586,201.
Each Unit is comprised of one common share of the Company issued
as a "flow-through share" (as defined in subsection 66(15) of the
Income Tax Act (Canada)) 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 at a price of $0.30 any time prior to 5:00 p.m. (Toronto
time) on December 22, 2013.
M Partners Inc. acted as agent (the "Agent") in connection with
the Offering and, together with certain selling group members, was
paid a cash commission equal to $161,931. In addition, the Company
issued compensation warrants to the Agent and certain selling group
members exercisable to purchase a total of 816,695 common shares of
the Company, at a price of $0.19 per share, for a period of 24
months following the closing.
The securities issued in connection with the Offering have a
hold period expiring April 23, 2012. The net proceeds of the
Offering will be used to advance the Company's Frankfield gold
project.
About Gowest
Gowest is a Canadian gold exploration and development company
focused on the delineation and development of its 100% owned
Frankfield East gold deposit. Gowest is exploring additional gold
targets on the Frankfield land package and continuing to evaluate
acquisition targets in the vicinity of the Frankfield project area,
part of the prolific Timmins, Ontario gold camp.
Forward-looking statements
This news release contains certain "forward looking statements".
Such forward-looking statements involve risks and uncertainties.
The results or events depicted in these forward-looking statements
may differ materially from actual results or events. 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 PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
Contacts: Gowest Gold Ltd. Greg Romain President & CEO (416)
363-1210info@gowestgold.com