Gowest Gold has entered a partnership with PGB Timmins Holdings LP, an investment firm controlled by Pandion Mine Finance LP, to raise US$17.6 million toward the development of its Bradshaw gold deposit 42 kilometres northeast of Timmins.
Under the prepaid forward gold purchase agreement, Gowest will get the money in four installments over the course of a year, in exchange for 65,805 ounces of gold, to be produced from Bradshaw and delivered to PGB.
PGB retains the right to reduce the amount of gold delivered in exchange for shares in the company.
"We are extremely pleased to have taken a major step forward by executing this financing agreement with Pandion, our newest partner, in the development of Bradshaw into the next new gold mine in Timmins," Gowest president-CEO Greg Roman said in a Dec. 16 release.
"With the site surface development underway, we expect to begin underground development and provide a detailed timeline early in the new year."
Currently, Bradshaw contains a National Instrument 43-101 compliant Indicated...