Le Lézard
Classified in: Mining industry, Business
Subject: FINANCING AGREEMENTS

Gowest Gold Completes Debt Conversion


TORONTO, Oct. 15, 2021 (GLOBE NEWSWIRE) -- Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE: GWA) announced today that, effective October 15, 2021, it has completed its previously reported (see Gowest news release dated July 26, 2021) conversion of an aggregate of $18,024,088 of debt (the "Debt") owed to four separate creditors (the "Creditors") into equity of Gowest (the "Transaction"). The Debt, which was incurred by the Company to support operations since 2017, was converted into common shares of Gowest at a conversion price of $0.25 per share, resulting in the issuance of an aggregate of 72,096,350 common shares of Gowest.

Additional details concerning the Debt converted by each of the participating Creditors are set out below:

The Transaction is intended to improve the financial condition of the Company as Gowest had insufficient cash on hand, and no immediate source of cash that would be sufficient to satisfy the Debt. No new Control Person (as defined under the applicable policies of the TSX Venture Exchange) was created pursuant to the Transaction.

Given that Mr. Elliott is a director of the Company, the debt conversion by Mr. Elliott constitutes a related-party transaction under the applicable provisions of Multilateral Instrument 61-101 ? Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The debt conversion by Mr. Elliott is exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and (b) and 5.7(1)(b), respectively, of MI 61-101.

All of the securities issuable in connection with the Transaction are subject to a hold-period expiring four months and one day after date of issuance.

Early Warning Disclosure

Greenwater

Greenwater held no common shares of Gowest prior to the completion of the Transaction. Pursuant to the Transaction, Greenwater acquired 25,140,774 common shares of Gowest, representing approximately 16.3% of the issued and outstanding common shares of Gowest.

Greenwater holds no additional options, warrants or other securities convertible into or exchangeable for common shares of Gowest.

All securities of the Company held by Greenwater are held for investment purposes and Greenwater has no present intention to dispose of or acquire further common shares of Gowest. In the future, Greenwater may, from time to time, increase or decrease its ownership, control or direction over securities of Gowest held by it through market transactions, private agreements or otherwise depending on market conditions, the business and prospects of Gowest and other relevant factors.

A copy of the early warning report filed by Greenwater in connection with completion of the Transaction may be obtained from Greenwater by contacting Ms. Gerile, at +86-13847635568 and will be available under Gowest's profile on SEDAR at www.sedar.com. The head office of Greenwater is located at Room 3306, Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong.

Jinshengda

Jinshengda held no common shares of Gowest prior to the completion of the Transaction. Pursuant to the Transaction, Jinshengda acquired 23,434,208 common shares of Gowest, representing approximately 15.2% of the issued and outstanding common shares of Gowest.

Jinshengda holds no additional options, warrants or other securities convertible into or exchangeable for common shares of Gowest.

All securities of the Company held by Jinshengda are held for investment purposes and Jinshengda has no present intention to dispose of or acquire further common shares of Gowest. In the future, Jinshengda may, from time to time, increase or decrease its ownership, control or direction over securities of Gowest held by it through market transactions, private agreements or otherwise, depending on market conditions the business and prospects of Gowest and other relevant factors.

A copy of the early warning report filed by Jinshengda in connection with completion of the Transaction may be obtained from Jinshengda by contacting Mr. Rui Niu, at +86-15934936878 and will be available under Gowest's profile on SEDAR at www.sedar.com. The head office of Jinshengda is located at 4-602 Dikuang Plaza, Wangfu Street, Chifeng, Inner Mongolia, China, 024005.

Lush Land

Lush Land held no common shares of Gowest prior to the completion of the Transaction. Pursuant to the Transaction, Lush Land acquired 22,272,820 common shares of Gowest, representing approximately 14.4% of the issued and outstanding common shares of Gowest.

Lush Land holds no additional options, warrants or other securities convertible into or exchangeable for common shares of Gowest.

All securities of the Company held by Lush Land are held for investment purposes and Lush Land has no present intention to dispose of or acquire further common shares of Gowest. In the future, Lush Land may, from time to time, increase or decrease its ownership, control or direction over securities of Gowest held by it through market transactions, private agreements or otherwise depending on market conditions, the business and prospects of Gowest and other relevant factors.

A copy of the early warning report filed by Lush Land in connection with completion of the Transaction may be obtained from Lush Land by contacting Mr. Meirong Yuan, at +1(905)3468085 and will be available under Gowest's profile on SEDAR at www.sedar.com. The head office of Lush Land is located at 164 Wood Haven Park Drive, Oakville, Ontario, Canada. L6L 4K6.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100?square?kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43?101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre?Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut?off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information please contact:

C. Fraser Elliott Greg Taylor
ChairmanInvestor Relations
Tel: (416) 363-1210 Tel: (416) 605-5120
Email: [email protected]Email: [email protected]

 



These press releases may also interest you

at 10:05
Mayfair Gold Corp. ("Mayfair" or the "Company") today announced that it has received a shareholder meeting requisition notice pursuant to section 167 of the Business Corporations Act (British Columbia) (the "Requisition") dated March 27, 2024 from...

at 09:42
Vizsla Silver Corp. ("Vizsla Silver" or the "Company") is pleased to announce that it has entered into an agreement to acquire the past-producing La Garra-Metates district (the "La Garra-Metates District" or "La Garra") situated in the heart of...

at 09:30
Siskinds LLP has filed a proposed securities class action against SSR Mining Inc. and other defendants in the Supreme Court of British Columbia. The action relates to SSR Mining's flagship asset, the Çöpler Mine, located in Türkiye. On February...

at 09:05
Global diversified manufacturing leader Milliken & Company today announced that it received an A- rating in the climate change category of the 2023 CDP, a comprehensive environmental disclosure platform....

at 09:00
DCK TOOLS (DongCheng company), a trusted supplier and innovator of professional power tools made its first appearance at the National Hardware Show (NHS) 2024 held in Las Vegas. NHS is a premier industry event that connects experts, customers and...

at 09:00
Highlander Silver Corp. (the "Company" or "Highlander Silver") announces that the closing of the share purchase agreement dated November 29, 2023 (the "Share Purchase Agreement") with SSR Mining Inc. ("SSR...



News published on and distributed by: