TORONTO, ONTARIO--(Marketwire - Dec. 12, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Gowest Gold Ltd. ("Gowest" or the "Corporation") (TSX VENTURE:GWA)(OTCBB:GWSAF) announces that it has increased the number of "flow-through" units of the Corporation (the "FT Units") issuable under its previously announced private placement (the "Offering") by up to 4,167,000 FT Units, for additional gross proceeds to the Corporation of up to approximately $500,000. Each FT Unit will be comprised of one "flow-through" common share and one-half of one common share purchase warrant, with each whole warrant being exercisable to acquire one common share of the Corporation at a price of $0.14 for a period of 24 months following the closing date of the Offering.
Following this amendment to the terms of the Offering, the Corporation may now issue up to an aggregate of 18,542,000 FT Units (inclusive of the over-allotment option granted to the agent), at a price of $0.12 per FT Unit, for total gross proceeds to the Corporation of up to approximately $2,225,000.
In addition to the FT Units, the Corporation is offering up to 13,637,000 units of the Corporation (the "Units"), at a price of $0.11 per Unit, for gross proceeds to the Corporation of up to approximately $1,500,000. Each Unit will be comprised of one common share of the Corporation and one-half of one common share purchase warrant, with each whole warrant being exercisable to acquire one common share of the Corporation at a price of $0.14 for a period of 24 months following the closing date of the Offering.
Mackie Research Capital Corporation has been engaged by the Corporation as its exclusive agent in connection with the Offering. Certain other material terms of the Offering are described in the Corporation's press release dated November 29, 2012 announcing the Offering.
Closing of the Offering is expected to occur on or about December 19, 2012 and is subject to the receipt to all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued in connection with the Offering will be subject to a hold period expiring four months and one day from the closing date of the Offering.
The securities being offered have not, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This press release does not constitute an offer for sale of securities in the United States.
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.
This news release contains certain "forward-looking statements" including statements relating to the completion of a proposed offering and sale of securities of the Corporation. 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.