01:37 PM EDT, 06/24/2024 (MT Newswires) -- Gowest Gold ( GWSAF ) on Monday soared 79% after it agreed to a going-private transaction with a group of shareholders offering to acquire the shares they do not already control for a 114% premium to the company's Friday closing price.

The company said the shareholder group, which together own 91.5% of Gowest's shares, are offering $$0.15 per share in cash. The shares closed Friday at $0.07 on the TSX Venture Exchange.

The shareholder group includes "Lush Land Investment Canada Inc., Greenwater Investment Hong Kong Limited, 1000216244 Ontario Inc., Debao Wang, Yun Zhao, Fortune Future Holdings Limited, Meirong Yuan, C. Fraser Elliott and CFE Financial Inc. (a corporation controlled by Mr. Elliott)," Gowest said.

"Gowest has faced significant challenges for a number of years in raising sufficient capital to carry out its objective of developing the Bradshaw deposit and ultimately bringing it into production. Operating as a public company is expensive and has become a constraint on the ability of the Company to raise capital and operate efficiently. This transaction will allow a small group of our committed investors, who historically have been our most substantial source of capital, to bear the significant continuing exploration, financing and other risks facing the Company going-forward," chief executive Dan Gagnon said in a release.

The company's board is recommending acceptance of the offer.

Gowest shares were last seen up $0.055 to $$0.125 on the Venture Exchange.

Price: 0.13, Change: +0.06, Percent Change: +78.57