Jan 19 2017
Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has 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 100% owned Bradshaw Gold Deposit ("Bradshaw") to the provincial power transmission grid. The parties have agreed to work towards formalizing an agreement in early 2017.
As previously reported (see Gowest news release dated December 16, 2016), the Company has secured financing and initiated Advanced Exploration work at Bradshaw. For the long term development of the project, Gowest requires an electrical power supply for their mine site, which will be facilitated by the proposed agreement with Valard. Prior to the planned connection with the provincial grid, Gowest will employ portable diesel generators at the site.
Under the terms of the LOI, Valard, an international engineering and construction contractor that specializes in all aspects of high voltage electrical infrastructure would focus on providing the appropriate technical assessment for the project; lead the application process to solicit required regulatory approvals; provide up-front funding for the project; and, design and construct the Transmission Facilities. In turn, Gowest plans to compensate Valard for the cost of the project during the term of the Bradshaw mine.
Greg Romain, President and CEO said, "This evolving partnership with Valard represents another step towards the development of Bradshaw into the next new gold mine in Timmins."
Adam Budzinski, the President of Valard, commented, "We are very pleased to be partnering in the development of Gowest's project, which is significant not only for both of our companies but also for the community of Timmins, which has benefited from and supported mining in the region for more than a century."
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Kevin Montgomery, P.Geo., Gowest's Manager of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.
Source: http://www.gowestgold.com/