Gowest Gold Ltd. said Feb. 14 that it entered into an agreement to sell gold concentrate to be produced from its Bradshaw gold project in Ontario to China-based Shandong Humon Smelting.
In connection with the deal, Gowest Gold received a US$3 million prepayment from Shandong Humon. The advance will be repaid in the form of gold concentrate, cash or common shares by June 30, 2019.
Gowest Gold will use the funds for ongoing development at Bradshaw, where an ore sorter is expected to start commissioning by the end of the first quarter.
The company plans to ship its first concentrate to Shandong Humon's smelter in the second quarter using gold produced as part of its advanced exploration and bulk sampling program on the property.