Gowest gets $19M boost for Bradshaw from Hong Kong’s Greenwater

Greenwater Investment Hong Kong has agreed to invest $19 million in Gowest Gold (TSXV: GWA), sole owner of the Bradshaw gold project, 50 km northeast of Timmins, Ont. Gowest says it will use the proceeds to restart development work at Bradshaw (formerly Frankfield East).

Gowest will issue to Greenwater promissory notes in the principal amount of $7.5 million. If shareholders approve, the units will be convertible into units priced at 13¢ each, raising a further $11.5 million. Each unit will consist of one additional common share and one share purchase warrant of Gowest within two years at a price of 16¢ during the first year and 17¢ during the second.

Gowest began drilling the Bradshaw deposit in 2010 and produced a prefeasibility (PFS) study in 2015. At that time and using a gold price of US$1,200 per ounce, the project carried an after-tax net present value (at a 5% discount rate) of $29.2 million and an internal rate of return of 27%. The initial capital investment would be $21.5 million for an underground mine producing 40,500 oz. of gold annually over an 8.5 year life. Payback would be achieved in 3.5 years. The all-in sustaining cost was estimated to be US$891 per oz.

The PFS estimated indicated resources at 2.1 million tonnes grading 6.19 g/t gold (422,059 oz.) and inferred resources at 3.6 million tonnes grading 6.47 g/t gold (754,553 oz.). A cut-off of 3 g/t gold was used in the study.

At the conclusion of this financing, Greenwater will be a 20% shareholder as well as a creditor of Gowest.

More information is posted at www.GowestGold.com.