TORONTO, ONTARIO–(Marketwire – December 22, 2011) – 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.
For further information please contact:
Greg Romain
President & CEO
Tel: (416) 363-1210
Email: [email protected]
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
