Gowest Gold Ltd entered into a non-binding letter of intent to acquire 50% interest in The Redstone Mill located near Timmins, Ontario from Northern Sun Mining Corp.

Gowest Gold Ltd (TSXV:GWA) entered into a non-binding letter of intent to acquire 50% interest in The Redstone Mill located near Timmins, Ontario from Northern Sun Mining Corp. on January 23, 2017. As on June 16, 2017 Gowest Gold Ltd signed definitive agreement with Northern Sun Mining Corp. to acquire 50% interest in The Redstone Mill. Post-acquisition Northern Sun will initially transfer to JVco substantially all of the assets comprising the Redstone Mill and JVco will assume obligations and liabilities relating to the Redstone Mill, in exchange for shares of JVco having an aggregate deemed value of CAD 23 million. The consideration is proposed to be paid by Gowest in two (2) installments. The first installment of the purchase price shall be due and payable on the closing of the transaction and shall be satisfied by the issuance to Northern Sun of units of an aggregate of 38 million units of Gowest. Each Unit will be comprised of one common share of Gowest and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling Northern Sun to acquire one additional common share of Gowest at a proposed exercise price of CAD 0.165 for a period of 18 months following the closing. The second installment of the Purchase Price shall be due and payable on or before the date that is 12 months following the closing, and satisfied, at the option of Northern Sun, either in cash or by the issuance to Northern Sun of that number of common shares of Gowest having an aggregate value equal to CAD 5.75 million. If Northern Sun elects to receive shares, the value per common share of Gowest will be equal to the market price per common share on the TSX Venture Exchange as of the date on which Northern Sun elects to receive common shares, less a 25% discount, provided that the value per common share shall not be less than the deemed value per Unit at Closing. It is currently anticipated that definitive documentation in respect of the transaction will be completed on or prior to February 28, 2017, and Closing will occur as soon as practicable thereafter. The transaction is subject to the negotiation of definitive documentation setting forth the detailed terms and conditions of the transaction and is subject to the approval of the TSX Venture Exchange.Transaction is expected to close at August 31, 2017. Mr. Kevin Montgomery, P.Geo., Gowest’s Manager of Exploration, reviewed and approved technical information in this news release under National Instrument 43-101 standards.