Gowest Gold has signed a non-binding letter of intent with Pandion Mine Finance to fund the company's advanced exploration work at its 100 per cent-owned Bradshaw Gold deposit.
The US$17.6 million financing is subject to the completion of the remaining due diligence and the negotiation and execution of a prepaid forward gold purchase agreement and related security documentation. On completion of the agreement, funds are expected to be received in a number of tranches with a total term of 72 months, subject to certain funding conditions and milestones.
Bradshaw contains a National Instrument 43-101 indicated resource estimated at 2.1 million tonnes grading 6.19 g/t Au containing 422,000 oz. Au and an inferred resource of 3.6 million t grading 6.47 g/t Au containing 755,000 oz Au.
Based on a pre-feasibility study produced by Stantec, Bradshaw contains probable mineral reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200/o.z, totalling 1.8 million tonnes grading 4.82 g/t Au for 277,000 oz Au.
