The additional exploration will be focused on the Corporation's 100% owned
This newly funded program is part of a larger planned program aimed at expanding the mineable resource at Bradshaw, as well as to further test other parts of the Corporation's NTGP area where notable gold has also previously been intercepted.
Loan Agreement
On
The loan will be funded in tranches on a monthly basis from the date of the Loan Agreement until
The proceeds of the loan are to be used to continue the Corporation's previously noted exploration program at Bradshaw as well as on previously identified areas of the NTGP with the objective of increasing Gowest's gold resources.
As the Lender is a significant shareholder of the Corporation, holding approximately 26.02% of the issued and outstanding common shares of the Corporation, the entering into of the Loan Agreement constitutes a 'related party transaction' pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101'). Additional disclosure required by MI 61-101 concerning the related party transaction is set out below under the heading 'Additional Related Party Disclosure'.
The Loan Agreement remains subject to the final approval of the
Overview-Phase 2: Plans for this new
Phase 1 Diamond Drilling Update
A total of 5,055 m of drilling was completed as of
The 5,000-metre Phase 1 drill program was finished with the completion of hole GW23-335, and additional exploration drilling is underway, funded through the above-noted loan agreement.
Highest intercept: 8.12 grams per tonne (g/t) gold (Au) over 2.5 m in hole GW23-332 from the HW4 zone within 2.95 g/t Au over 15 m.
Several new hanging wall (HW) zones were cut, with the highest being 6.53 g/t Au over 1.6 m in hole GW23-332.
The 5,000-metre Phase 1 drill program was finished in November with the completion of hole GW23-335. A total of 16 drill holes (5,055 m) were drilled in the program, from which all gold results have been received.
Ten significant gold intersections were encountered in three recent holes: GW23-332, GW23-334 and GW23-335. The highest intersection received was 8.12 g/t Au over 2.5 m in hole GW23-332 from the HW4 zone. Encouragingly, several new hanging wall zones were encountered in the holes with the highest being 6.53 g/t Au over 1.6 m, 6.08 g/t Au over 1.9 m, and 6.03 g/t Au over 1.7 m. Two holes also intersected the
Board of Directors Appointment
Gowest is also pleased to announce the appointment of Mr.
Additional Related Party Disclosure
As the Lender is a significant shareholder of the Corporation, holding approximately 26.02% of the issued and outstanding common shares of the Corporation, the entering into of the Loan Agreement constitutes a 'related party transaction' pursuant to MI 61-101.
The loan transaction under the Loan Agreement is exempt from the valuation requirement under MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and (b) of MI 61-101, as the maximum principal amount of the loan represents less than 25% of the Corporation's market capitalization, and the common shares of the Corporation are listed only on the
The Loan Agreement has been approved by the disinterested members of the board of directors of the Corporation. In connection with the approval of the Loan Agreement, Mr.
A material change report is not being filed more than 21 days prior to entering into of the Loan Agreement in order that the Corporation may close the transaction as expeditiously as possible, and gain access to the initial funds to be advanced under the Loan Agreement, such that the Corporation may commence the execution of its exploration plan and achieve the schedule set out therein, and such shorter period was considered reasonable in the circumstances.
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
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to future advances of funds under the Loan Agreement, the use of the proceeds of the Loan Agreement, the details concerning the new
Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including those risk factors set forth in the Corporation's management's discussion and analysis and other filings available via the System for Electronic Document Analysis and Retrieval (SEDAR) under the Corporation's profile at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Corporation does not intend to or assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Tel: (416) 363-1210
Email: info@gowestgold.com
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