Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

December 18, 2009 13:30 ET

Gowest Completes $6,572,688 Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2009) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company")(TSX VENTURE:GWA) announced today that it completed its previously announced brokered private placement for aggregate gross proceeds of $6,572,688 (the "Offering"). The over-allotment option granted to Sandfire Securities Inc. (the "Agent") in connection with the Offering was exercised in part on the closing of the Offering.

Pursuant to the Offering, the Company issued and sold: (i) 11,778,278 units of the Company (the "Units"), at a price of 0.18 per Unit, with each Unit being comprised of one common share of the Company and one common share purchase warrant (a "Warrant"); and (ii) 20,239,081 units of the Company (the "FT Units"), at a price of 0.22 per FT Unit, with each FT Unit being comprised of one "flow-through" common share of the Company and one-half of one Warrant.

Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.30 for a period of 24 months following the closing date of the Offering. In the event that the closing price of the common shares of the Company listed on the TSX Venture Exchange is greater than $0.40 for a period of 20 consecutive trading days at any time after closing, the Company may, at its option, accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire 30 days thereafter.

Pursuant to the Offering, an aggregate of 7,954,538 FT Units were issued and sold to the MineralFields Group. "We are very pleased to be entering into this relationship with MineralFields Group", said Greg Romain, President and Chief Executive Officer. "This is an important milestone in the growth of the Company and we look forward to working with the MineralFields Group and our other investors as we continue to explore and develop our Frankfield property."

The net proceeds will be used to explore the Company's Frankfield gold project and for general working capital purposes.

Upon closing, the Agent and members of the selling group received cash commissions of up to 8% of the gross proceeds of the Offering and warrants (the "Agent's Warrants") equal to up to 8% of the aggregate number of Units and FT Units sold under the Offering. Each Agent's Warrant will be exercisable to acquire one Unit at a price of $0.18 for period of 18 months following the closing date of the Offering. Limited Market Dealer Inc. acted as a selling group member in respect of the purchase of FT Units by the MineralFields Group.

The securities issued in connection with the Offering are subject to a hold period expiring 4 months and one day from the date of closing.

About Gowest

Gowest is a Canadian gold exploration and development company focused on financing, exploring, growing and mining its 100% owned 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