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Gowest
Amalgamated Resources Ltd. ("Gowest" or
the "Company") (TSX VENTURE:GWA - News; OTCBB:GWSAF - News) announces that it has
engaged Salman Partners Inc. (the
"Agent") to complete a brokered private placement (the
"Offering") to raise aggregate gross proceeds of up to $2,500,000
on a best efforts basis. In connection with the offering, the Company intends
to issue up to 7,272,800 common shares which will qualify as
"flow-through" common shares pursuant to the Income Tax Act
(Canada) ("FT Shares") at a price of $0.275 per FT Share.
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 1,818,200 Flow-Through Shares (for up to an additional
$500,000 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 December 22, 2010 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 explore the Company's Frankfield gold project.
About
Gowest
Gowest
is a Canadian gold exploration and development company focused on the
delineation, development and mining of its 100% owned 510,000 oz (2,200,000 tonnes @ 6.5 g/t) 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:
Greg Romain
Gowest Amalgamated Resources Ltd.
President & CEO
(416) 363-1210
info@gowestgold.com
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