TORONTO — Toronto-based Gowest Gold Ltd. announced Jan. 18 it has entered into a letter of intent with Valard Construction LP for the financing, design, procurement and construction of a high-voltage electrical transmission line to connect its Bradshaw Gold Deposit to the provincial power grid.
The parties have agreed to work towards formalizing an agreement in early 2017. The Bradshaw mine is located 42 kilometres north of Timmins, Ont.
In December, Gowest announced it had secured financing and initiated advanced exploration work at Bradshaw.
For the long-term development of the project, Gowest requires an electrical power supply for the mine site, indicates a media statement.
Prior to the planned connection with the provincial grid, Gowest will employ portable diesel generators at the site.
Under the terms of the letter of intent, Valard, an Edmonton-based international engineering and construction contractor that specializes in 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 will 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."
Gowest is exploring additional gold targets on its 100-square-kilometre North Timmins Gold Project land package.