Gowest Gold intends to raise $5 million in financing to get its stalled BradshawGold Deposit, near Timmins, back on a track.
The company announced April 30 that it intends to complete a private placement of common shares, a portion of that to be issued on a flow-through basis. Pricing terms and more details will be released at a later date.
Mine development at Bradshaw was suspended after a toll milling agreement with Northern Sun Mining was terminated in mid-April.
With 28,000 tonnes of mined material sitting on the property, the company said there's no room left for more material.
Terminating the milling agreement meant Gowest couldn't go back to its project financier, PGB Timmins Holding LP who provided the start-up capital, for a second tranche of financing. It forced Gowest to make alternative arrangements.
The Bradshaw deposit is within Gowest's North Timmins Gold Project, a 109-square-kilometre land package northeast of Timmins. The company wants to start commercial production next year.
They're projecting it to be a 50,000-ounce-a-year gold producer at peak production over an 8.5-year mine life. There's potential...