51 51 Page 50 By Gregory Reynolds Discovering gold sometimes is easier than fnd a milling facility to process the ore from the resulting mine but junior miner Gowest Gold Ltd has solved that problem by buying 50 per cent of an existing mill near its T im mins gold development project On Jan 23 Gowest announce d that it has entered into a nonbinding letter of intent with Northern Sun Mining Corp a corporation existing under the laws of the Province of Ontario with respect to the creation of a joint venture corporation JVco to own and operate the Redstone Mill Upon completion of the proposed T ransac tion each of the parties held a 50 interest in JVco Gowest is a Canadian gold company focused on fasttracking the develop ment of its 100 owned Bradshaw Gold Deposit formerly named Frank feld East part of its North T immins Gold Project NTGP Gowest is also exploring additional gold tar gets on the 1 10squarekilo metre NTGP land package it controls and continuing to evaluate acquisition tar gets in the vicinity of the Pipestone Fault area part of the prolifc T im mins Gold Camp Currently Brad shaw contains a National Instrument 43101 compli ant Indicated Resource estimated at 21 million tonnes grad ing 619 gt Au for 422 thousand oz Au and an Inferred Resource of 36 million t grading 647 gt Au for 755 thousand oz Au Further based on the PreFeasibility Study conducted by Stantec Mining Bradshaw contains Mineral Reserves using a 3 gt Au cutof and a gold price of US1200 oz totalling 18 million t grading 482 gt Au for 277 thousand oz Au Gowest boasts a highly experienced and capable management team and board with a proven track record of success in all key areas including fnance exploration mine develop ment business development and gold production The Redstone Mill was 100 owned by Northern Sun and had the capac ity to process approximately 1500 tonnes of oreper day Located just south of Gowest s Bradshaw Gold Deposit which forms part of its North T immins Gold Project the Redstone Mill is wellsituated to satisfy Gow est s anticipated future ore processing requirements In order to efect the proposed trans action Northern Sun initially trans ferred to JVco all of the assets com prising the Redstone Mill and JVco assumed all of the obligati ons and liabilities relat ing to the mil l in ex change for shares of JVco having an aggregate deemed value of 23 mil lion The assets were transferred to JVco free and clear of all liens or en cumbrances other than any permitted encumbrances Following the or ganization of JVco by Northern Sun Gowest purchased a 50 interest in JVco for consider ation equal to 1 15 million In connection with the transaction JVco and Gowest entered into agree ments on market terms pursuant to which JVco among other things agreed to process ore produced by Gowest from its proposed 30000 tonne bulk sample Also JVco re served an average of 500 tonnesper day of capaci ty in order to satisfy Gowest s anticipated future ore pro cessing requirements Greg Romain Gowest president and CEO commented we look forward to becoming equal partners with Northern Sun in the Redstone Mill where we can process the material we extract from Bradshaw and with our partner we can beneft fnancially by helping to secure additional feed for the remaining mill capacity from other regionally located mining com panies On Feb 2 Gowest announced that PGB T immins Holdings LP PGB funded the initial tranche of US5600000 pursuant to the previ ously announced PrePaid Forward Gold Purchase Agreement entered into between PGB and Gowest on Dec 16 2016 PGB is an investment vehicle con trolled by Pandion Mine Finance LP The proceeds from the initial tranche were used by Gowest principally to fund the development of the Brad shaw as well as for general and ad ministrative costs and the payment of transaction fees and expenses relating to the fnancing Pandion is a miningfocused invest ment frm backed by MKS P AMP Group and Ospraie Management LLC that provides fexible fnancing solutions to developing mining com panies Gowest buys 50 of mill in T immins to handle its or e Page 51 Gowest buys 50 of mill in T immins to handle its or e NOW OFFERED BY TECHNOSUB Connecting P eople P o w ering Communities No matt er ho w lar ge or c omple x y our mines po w er needs ar e V alar d has the r es our c es t o deliv er a suc c essful out c ome F r om engineering and pr ocur ement t o c onstruction and maint enanc e get in t ouch with us f or a simple c ost ef ectiv e s olution w w w v alar d c om E PC Engineering Pr ocur ement Construction