TORONTO, ON, December 22, 2010 – Gowest Amalgamated Resources Ltd. (“Gowest” or the “Company”) (TSX Venture: GWA, OTCBB: GWSAF) is pleased to announce the closing of its previously announced brokered private placement (the “offering”) through Salman Partners Inc. (“Salman”). Salman placed a total of 9,379,837 “flow-through” common shares for gross proceeds of $2,579,455 (which included the full exercise of the over-allotment option granted to Salman). Salman received a cash commission of 7% of the gross proceeds raised.
The gross proceeds of the offering will be used by Gowest to fund exploration and development work on the company’s Frankfield Gold project which is located in the prolific Timmins Gold camp in Ontario, Canada.
After more than doubling the size of the mineralized envelope at the company’s flagship Frankfield East gold deposit in 2010 to 775m along strike and 830m at depth, the company is focused on confirming and extending this gold mineralization through the mobilization of additional drill rigs early in 2011 to aggressively infill the existing mineralized envelope and to expand the envelope further, particularly at depth.
The company plans to release an updated 43-101 resource on the Frankfield East gold deposit in Q1, 2011 followed by a preliminary economic assessment (scoping study) thereafter.
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] Or
Rory Quinn Investor Relations
Toll Free: (877) 363-1218
Tel: (416) 363-1210 ext. 208
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.
