TORONTO, ONTARIO–(Marketwire – July 14, 2010) – Gowest Amalgamated Resources Ltd. (“Gowest” or the “Company”) (TSX VENTURE:GWA) today announced that the Company has executed the definitive agreement for the purchase of mining properties in Tully Township adjacent to the Company’s 100% owned Frankfield Project. The Frankfield Project area hosts the Frankfield East deposit which contains a 43-101 compliant 510,000 ounce resource (2.4 million tonnes @ 6.5 g/t). The deposit remains open along strike and at depth and appears to be part of a larger structurally controlled gold-hosting system
The properties acquired include 4 contiguous leased claims (mining rights only) consisting of 4 units covering approximately 163.5 acres (65.4 hectares) in the south central portion of Tully Township and contiguous to the south boundary of the Company’s Frankfield Project.
The transaction includes $16,000 cash, 70,000 common shares of the Company and a 0.50% royalty at gold prices less than US$950 per ounce or 0.75% royalty at gold prices equal to or greater than US$950 per ounce on the net smelter returns (“NSR”) derived from future gold production from these mining properties. The Company will maintain an NSR buyout option valued at $125,000 for each 0.25% of the desired NSR.
The Company also announced that Mr. Mark Raguz resigned from the Board of Directors effective immediately. The Board would like to thank Mark for his contribution and wishes him success in his new position at Griffiths McBurney (GMP) Securities.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation, development and operation of its 100% owned Frankfield East gold deposit while continuing to evaluate additional exploration and 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” including in respect of a proposed acquisition of certain properties by the Company. 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.
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http://media3.marketwire.com/docs/gwa714fig1.pdf.
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CONTACT INFORMATION:
Gowest Amalgamated Resources Ltd.
Greg Romain
President & CEO
416.363.1210
or
Gowest Amalgamated Resources Ltd.
Rory Quinn
Investor Relations
416.363.1210 ext. 208 or Toll Free: 877.363.1218
