Gowest entered into a definitive Custom Milling Agreement with QMX Gold Corporation (“QMX”) pursuant to which QMX will process material from Bradshaw at its Aurbel Mill located in Val d’Or, Quebec.
Gowest provided an update on the progress the Company had made at Bradshaw, noting that it had completed over 2,098 metres of underground development; 28,567 tonnes of development material hade been stockpiled on surface for sorting, milling and sale as concentrate; no injuries at the project to date for mine site surface and underground construction; the water treatment plant was fully operational and the discharge is environmentally compliant; and current mining was temporarily suspended due to the lack of room for further development material stockpiling as well as uncertainty on the timing of material processing.
Northern Sun had received conditional approval for the processing of the ore through the Redstone Mill from both the Ministry of Environment and Climate Change and the Ministry of Northern Development and Mines, subject to satisfying certain provincial government guidelines, the timing of which could not be determined. Meanwhile, Northern Sun and the Company mutually determined to terminate the previously announced share purchase agreement entered into between the parties, pursuant to which the Company was to acquire a 50% interest in the Redstone Mill and form a joint venture with Northern Sun for its operation. This termination allows for both Northern Sun and Gowest to re-evaluate their strategic plans.
Gowest signed an agreement to sell gold concentrate produced from Bradshaw to Shandong Humon Smelting (“Humon”) of China. In connection with entering into this agreement, Humon advanced US$3.0 million to Gowest as a pre-payment for the planned delivery and sale of gold concentrate to be produced as part of Gowest’s ongoing Advanced Exploration – Bulk Sample program.