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Gowest Gold closes $2.9m private placement financing

Gowest Gold (CVE:GWA) has closed its previously announced private placement financing in which it raised $2.9 million, the company said Friday.

The Toronto-based miner sold 7 million flow-through common shares for 28 cents per share, for proceeds of $2 million. It also sold 3.6 million units for a quarter per share, raising $900,000.

Each unit comprises of one common share and one-half of one common share purchase warrant of Gowest, with purchase warrants exercisable to acquire one extra common share for 35 cents, prior to August 12, 2013.

Proceeds will be used to advance the company's Frankfield gold project and for general corporate purposes, it said.

The Frankfield gold project, comprised of 42 claims on 2,444 hectares, currently contains 2.4 million tonnes of resources, with a grade of 6.5 grams per tonne. The deposit is situated 42 kilometres north east of Timmins, Ontario, in the southwest part of Tully Township.

In connection with the offering, a commission fee of 7% was paid to Salman Partners.

Gowest, formerly Gowest Amalgamated Resources, is a gold explorer looking for additional gold targets in its Frankfield land package.