Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

November 23, 2009 10:58 ET

Gowest Announces $6,000,000 Offering

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2009) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) announces that it has engaged Sandfire Securities Inc. (the "Agent") to complete a brokered private placement (the "Offering") to raise aggregate gross proceeds of up to $6,000,000 on a best efforts basis. In connection with the offering, the Company intends to issue: (i) up to 18,181,818 common shares which will qualify as "flow-through" common shares pursuant to the Income Tax Act (Canada) ("FT Shares") at a price of $0.22 per FT Share; and (ii) up to 11,111,111 units ("Units") at a price of $0.18 per unit.

Each Unit will consist of 1 common share of Gowest and 1 common share purchase warrant (the "Warrants"). Each Warrant will entitle the holder thereof to acquire one additional common share of Gowest at an exercise price of $0.30 per share for a period of 24 months following the date of issuance.

Upon closing, the Agent will receive a commission equal to 8% of the gross proceeds raised under the Offering, and options (the "Agent's Warrants") equal to 8% of the number of securities sold under the Offering. Each Agent's Warrant will be exercisable at $0.18 for one unit for a period of 18 months following closing, each such unit consisting of one common share and one warrant exercisable into one additional common share at an exercise price of $0.30 for a 24 month period.

Closing of the Offering is expected to occur on or about December 15, 2009 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 and for general working capital purposes.

About Gowest

Gowest is a Canadian gold exploration and development company focused on financing, exploring, growing and mining its 100% owned 510,000 oz (2,200,000 tonnes @ 6.5 g/t) Frankfield East gold deposit, part of the greater Frankfield Project in the prolific Timmins gold camp.

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.

Contact Information

  • Gowest Amalgamated Resources Ltd.
    Greg Romain
    President & CEO
    (416) 840-9912
    info@gowestgold.com