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Gowest Gold raising C$6M to develop Bradshaw gold deposit in Ontario

Canadian gold explorer Gowest Gold Ltd. aims to raise up to C$6 million to develop the Bradshaw gold deposit, part of its preproduction-stage North Timmins property in Ontario, and for exploration and working capital.

The offering comprises a nonbrokered private placement of up to 20 million units at 20 Canadian cents apiece for C$4 million and up to 9,090,910 flow-through units at 22 cents apiece for C$2 million. Each unit will include one share and half of a warrant, with each whole warrant exercisable at 30 cents per share for 24 months.

The offering may be completed in one or more tranches, with initial closing expected on or before Dec. 23, the company said Dec. 10.

In August, Gowest Gold settled a dispute with PGB Timmins Holdings LP over a gold purchase agreement related to the deposit.