Gowest Amalgamated Resources Ltd.

Gowest Amalgamated Resources Ltd.

January 11, 2007 17:08 ET

Gowest Amalgamated Resources Ltd. Announces New Property Acquisition

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) - Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA) ("Gowest") is pleased to announce that it has entered into an agreement with Sierra Development Services Inc. ("Sierra") pursuant to which it has been granted the option to acquire a 50% interest in 13 patented, contiguous mining claims situated in Lastheels Township, Sault Ste. Marie Mining Division, Ontario, comprising approximately 490 acres.

In order to earn its interest in the property, Gowest must make aggregate cash payments of $150,000 in tranches over a three year period, and incur aggregate exploration expenditures of $1,400,000 on the property in tranches over a four year period. In the event that Gowest fully exercises its option and acquires its 50% interest in the property, it will form a joint venture with Sierra and each of the parties will thereafter contribute to the development of the property in proportion to their respective interests therein, in the absence of which the interest of the non-contributing party will be diluted. In the event that either party allows its interest in the property to be diluted below a 20% participating interest in the property, then its interest will automatically revert to a 3% net smelter royalty (one-half of which may be purchased by the other party in consideration of a one-time payment of $2,000,000).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Gowest Amalgamated Resources Ltd.
    Ronald Bradshaw
    (519) 538-5858