Gowest Gold Ltd.
TSX VENTURE : GWA
OTC Bulletin Board : GWSAF

Gowest Gold Ltd.

July 19, 2011 11:16 ET

Gowest Announces $3,200,000 Offering

TORONTO, ONTARIO--(Marketwire - July 19, 2011) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) announces that it has engaged Salman Partners Inc. (the "Agent") in connection with a private placement on a best efforts agency basis of 4,444,500 common shares at a price of $0.27 per share plus 6,666,700 flow-through common shares at a price of $0.30 per flow-through common share for aggregate gross proceeds of approximately $3,200,000 (the "Offering").

Gowest has agreed to grant an overallotment option exercisable by the Agent in whole or in part on or before the Closing Date to increase the size of the Offering by up to an additional 1,666,700 Flow-Through Shares (for up to an additional $500,010 in gross proceeds). Upon closing, the Agent will receive a commission equal to 7% of the gross proceeds raised under the Offering.

Closing of the Offering is expected to occur on or about August 5, 2011 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 advance the Company's Frankfield gold project and general corporate purposes.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit. Gowest is exploring additional gold targets on the Frankfield land package and continuing to evaluate acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario 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 Gold Ltd.
    Greg Romain
    President & CEO
    (416) 363-1210
    info@gowestgold.com

    Gowest Gold Ltd.
    Rory Quinn
    Investor Relations
    (416) 363-1210 ext. 208 or Toll Free: (877) 363-1218