TORONTO, ON, December 20, 2010 – Gowest Amalgamated Resources Ltd. (“Gowest” or the “Company”) (TSX Venture: GWA, OTCBB: GWSAF) announced today that it intends to increase the size of its previously announced brokered private placement, with Salman Partners Inc. acting as exclusive agent to the Company in connection with the private placement, to raise aggregate gross proceeds of up to $2,580.000 (inclusive of the over-allotment option granted to the agent).
Pursuant to the offering, the Company may issue up to 9,381,818 common shares which will qualify as “flow-through” common shares pursuant to the Income Tax Act (Canada) at a price of $0.275 per share.
Closing of the private placement is expected to occur on or about December 22, 2010, subject to the receipt of all requisite regulatory approvals. The securities issued in connection with the private placement will have a hold period expiring 4 months and 1 day from the date of closing. The net proceeds will be used to explore Gowest’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] 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.
