TORONTO, ON, November 30, 2010 – Gowest Amalgamated Resources Ltd. (“Gowest” or the “Company”) (TSX Venture: GWA, OTCBB: GWSAF) announces that it has engaged Salman Partners Inc. (the “Agent”) to complete a brokered private placement (the “Offering”) to raise aggregate gross proceeds of up to $2,500,000 on a best efforts basis. In connection with the offering, the Company intends to issue up to 7,272,800 common shares which will qualify as “flow-through” common shares pursuant to the Income Tax Act (Canada) (“FT Shares”) at a price of $0.275 per FT Share.
Gowest has agreed to grant an overallotment option exercisable by the Agent in whole or in part on or before the Closing Date to increase the size of the Offering by up to an additional 1,818,200 Flow-Through Shares (for up to an additional $500,000 in gross proceeds). Upon closing, the Agent will receive a commission equal to 7% of the gross proceeds raised under the Offering.
Closing of the Offering is expected to occur on or about December 22, 2010 and is subject to regulatory approvals. The securities issued in connection with the Offering will have a hold period expiring 4 months and 1 day from the date of closing. The net proceeds will be used to explore the Company’s Frankfield gold project.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation, development and mining of its 100% owned 510,000 oz (2,200,000 tonnes @ 6.5 g/t) 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.
