Gowest entered into a Letter of Intent (“LOI”) with Valard Construction LP (“Valard”) for the financing, design, procurement and construction of a high-voltage electrical infrastructure (the “Transmission Facilities”) to connect its Bradshaw Gold Deposit to the provincial power transmission grid. The parties have agreed to work towards formalizing an agreement in early 2017.
Gowest entered into a non-binding 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”) that will own and operate the Redstone Mill. Upon completion of the proposed Transaction, each of the parties will hold a 50% interest in JVco. The Redstone Mill, located near Timmins, Ontario, which has the capacity to process approximately 1,500 tonnes of ore-per-day, is well-situated to satisfy Gowest’s anticipated future ore processing requirements.
PGB Timmins Holdings LP (“PGB”) funded the initial tranche of US$5,600,000 pursuant to the previously announced Pre-Paid Forward Gold Purchase Agreement entered into between PGB and Gowest on December 16, 2016. PGB is an investment vehicle controlled by Pandion Mine Finance, LP.