NEWS RELEASE TRANSMITTED BY Marketwire
FOR:
Gowest Amalgamated Resources Ltd.
TSX VENTURE SYMBOL:
GWA
Gowest Enters into Agreement to Sell Its Interest in the Gowest Property at Detour Lake, Ontario
JAN 17, 2006 - 16:00 ET
TORONTO, ONTARIO--(CCNMatthews - Jan. 17, 2006) - Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA) announces that it has entered into a non-binding letter agreement (the "Letter Agreement") with Trade Winds Ventures Inc. (TSX VENTURE:TWD) ("Trade Winds") to sell its 40% interest in the Gowest Property at Detour Lake, Ontario (the "Gowest Property").
Pursuant to an option granted by Gowest, Trade Winds has completed sufficient exploration expenditures to earn a 60% interest on the Gowest Property upon the payment of $75,000 to Gowest. Under the terms of the Letter Agreement, Trade Winds will acquire the remaining 40% interest in the Gowest Property by issuing one share of Trade Winds' common stock for each two issued and outstanding shares of Gowest, up to a total of 8,036,466 shares of Trade Winds. Pursuant to the Letter Agreement, Gowest has agreed to distribute these shares to its shareholders on a one for two pro-rata basis. Details of the distribution of these shares, including the record date, will be disclosed in due course.
In addition, Trade Winds will assign to Gowest a 1% Net Smelter Royalty ("NSR") against the Gowest Property. Trade Winds shall have the right to purchase 50% of the NSR from Gowest within one year of commencement of production for the amount of $750,000.
The Letter Agreement is subject to regulatory acceptance, and shareholder approval by the disinterested shareholders of Gowest.
A special meeting of the shareholders of Gowest will be convened in the near future to seek shareholder approval of the transaction.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gowest Amalgamated Resources Ltd.
Ronald J. Bradshaw, P. Eng.
President
(519) 538-5858
Visit our website at www.gowestamalgamated.com
