Gowest Gold Ltd of Timmins announce it signed a non-binding loan agreement with Pandion Mine Finance for $17.6 million to complete its advanced exploration work at its Bradshaw Gold Deposit just north of Timmins.
“We are very pleased that Pandion has recognized the serious potential that Bradshaw affords their investors,” said Greg Romain, president of Gowest Gold.
The financing still requires the undertaking of due diligence by Pandion and the negotiation of and execution of what is know as a prepaid forward gold purchase agreement and other documentation of security.
Once the full agreement is signed and in place the $17.6 million in funds will be received in a series of tranches or portions within a term of 72 months (six years) subject to conditions and milestones being met.
“Their funding package is particularly beneficial to our shareholders in that it represents a major step towards Gowest building the next new gold mine in the Timmins camp,” Romain said. “We look forward to closing this financing transaction as soon as possible.”
“For our part, Pandion is excited about the prospects for the Bradshaw project and is looking forward to working with the Gowest management team” said Joe Archibald, Founding Partner of Pandion.
The signing of the loan agreement comes less than two months after Gowest obtained its final environmental permits from the Ontario government to allow it to begin its advance stage exploration will allows the gold mining company to extract 50,000 tonnes of gold bearing bulk samples.
The Ontario Ministry of the Environment and Climate Change ("MOECC") completed its Environmental Assessment of Gowest's AE program and issued the final permit required for Gowest Gold to begin advanced exploration including the removal of a bulk sample.
Previous approvals came from the Ontario Ministry of Northern Development and Mines and the Ontario Ministry of Natural Resources and Forestry.
Advanced exploration allows a company to confirm the total quantity of gold at the site which had previously been forecast through various geophysical testing a bore hole drilling. The money obtained from the gold content also allows the company to continue to the operational stage
."After a lengthy and thorough review, we have received the critical permits that will enable us to take the next major step towards the development of the next new gold mine in the Timmins Gold Camp,” announced Romain, the company president.
“Gowest is a Canadian gold exploration and development company focused development of its Bradshaw Gold Deposit on the Frankfield Property, part of the Corporation’s North Timmins Gold Project (NTGP).
Gowest is exploring additional gold targets on its site and continues to evaluate the area.
Currently, Bradshaw has an indicated gold resource estimated at 2.1 million tonnes grading 6.19 gram/tonne gold; containing 422 thousand oz gold. It also has an Inferred gold resource of 3.6 million tonnes grading 6.47 g/t gold containing 755 thousand oz gold.
Pre-Feasibility studies produced by Stantec Mining and announced on June 9, 2015, states that Bradshaw contains probable mineral reserves, using a 3 gram/tonne gold, cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million tonnes grading 4.82 gram/tonne of gold for 277 thousand oz gold.
Pandion is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.