Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

December 29, 2006 09:29 ET

Gowest Amalgamated Resources Ltd. Closes Private Placement With MineralFields Group

TORONTO, ONTARIO--(CCNMatthews - Dec. 29, 2006) -

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

Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA)("Gowest") is please to announce that it has closed a private placement financing pursuant to which it has issued an aggregate of 857,142 units ("Units") at a price of $0.175 per Unit to the MineralFields Group, to raise gross proceeds of $150,000.

Each Unit consists of one flow through common share of Gowest and one non flow-through share purchase warrant of Gowest. Each warrant is exercisable to acquire one non flow-through common share of Gowest until December 28, 2008 at a price of $0.30 per share until December 28, 2007, and thereafter at a price of $0.40 per share until expiry.

"We are very pleased to be entering into this relationship with MineralFields Group", said Ronald Bradshaw, President of Gowest. "This is an important milestone in the growth of the company and we look forward to working with MineralFields Group as we develop our holdings."

Limited Market Dealer Inc. acted as the agent of Gowest in connection with the financing and received a cash commission equal to 5% of the gross proceeds raised, as well as 85,714 compensation options, each exercisable to acquire 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 28, 2008. Limited Market Dealer Inc. also received a due diligence fee equal to 5% of the gross proceeds raised in the offering.

The gross proceeds of the financing 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 29, 2007.

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assents under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about the MineralFields Groups is available at www.mineralfields.com.

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)