Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

December 08, 2009 13:08 ET

Gowest Provides Update on Offering

 TORONTO, ONTARIO--(Marketwire - Dec. 8, 2009) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) provided an update today on its previously announced brokered private placement (the "Offering") to raise aggregate gross proceeds of up to $6,000,000 on a best efforts basis. Specifically, the terms of the Offering have been amended such that the Company now intends to issue: (i) up to 11,111,111 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) up to 18,181,818 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 will entitle 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.

The Agent also has an option (the "Agent's Option"), exercisable prior to the closing to arrange for the purchase of: (i) up to 2,777,777 additional Units, for additional gross proceeds of up to $500,000; and (ii) up to 2,272,727 additional FT Units, for additional gross proceeds of up to $500,000. If the Agent's Option is exercised in full, total gross proceeds to the Company will be $7,000,000.

Upon closing, the Agent will receive a cash commission equal to 8% of the gross proceeds of the Offering and warrants (the "Agent's Warrants") equal 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.

Closing of the Offering is still 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 one 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 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