Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

December 18, 2006 16:04 ET

Gowest Amalgamated Resources Ltd. Closes Private Placement

TORONTO, ONTARIO--(CCNMatthews - Dec. 18, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWS WIRE SERVICES

Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA) ("Gowest") is pleased to announce that it has closed its previously announced non-brokered private placement financing announced by press release on December 5, 2006. Due to increased demand, Gowest increased the number of flow-through units (the "Units") sold pursuant to the offering, such that an aggregate of 1,985,715 Units were sold at a price of $0.175 per Unit to raise gross proceeds of $347,500.

Each Unit consists of one flow through common share ("Common Share") and one-half of one flow through share purchase warrant exercisable at $0.30 per share (the "First Warrant") and one-half of one flow through share purchase warrant exercisable at $0.40 per share (the "Second Warrant"). Each whole First Warrant is exercisable to acquire one flow through common share (the "First Warrant Share") at a price of $0.30 per share until December 18, 2007 (the "First Warrant Term"), provided that if April 19, 2007, the closing price of the Common Shares on the principal market on which such shares trade is equal to or exceeds $0.45 for 20 consecutive trading days, then, at the option of Gowest, the First Warrant Term shall automatically accelerate to the date which is 30 days following the date a press release is issued by Gowest announcing the reduced First Warrant Term. Each whole Second Warrant is exercisable to acquire one flow through common share (the "Second Warrant Share", and collectively with the First Warrant Share, the "Warrant Shares") at a price of $0.40 per share until December 18, 2008 (the "Second Warrant Term"), provided that if after April 19, 2007, the closing price of the Common Shares on the principal market on which such shares trade is equal to or exceeds $0.60 for 20 consecutive trading days, then, at the option of Gowest, the Second Warrant Term shall automatically accelerate to the date which is 30 days following the date a press release is issued by Gowest announcing the reduced Second Warrant Term. The Common Shares, First Warrants, Second Warrants and Warrant Shares are all flow through shares under the Income Tax Act, Canada.

Jones Gable & Company Ltd. assisted in the financing and received a cash commission equal to 7% of the gross proceeds raised, as well as 97,000 broker warrants (the "Broker Warrants"), each exercisable for one Unit of Gowest (which is not a flow through share under the Income Tax Act, Canada) at a price of $0.175 until December 18, 2007.

The gross proceeds of the financing and the proceeds, if any, received on the exercise of the First Warrants and the Second Warrants will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act, Canada) related to exploration programs of Gowest to be conducted on Gowest's properties.

The financing remains subject to final TSXV approval. All of the securities issuable in connection with the financing are subject to a hold period expiring April 19, 2007.

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

Contact Information

  • Gowest Amalgamated Resources Ltd.
    Ronald J. Bradshaw
    President
    (519) 538-5858
    (519) 538-5530 (FAX)