02:03 PM EDT, 08/09/2019 (MT Newswires) -- Updates shares in final paragraph.)

Gowest Gold (GWA.V) was down 33% after the company on Friday said PGB Timmins Holdings, a unit of Pandion Mine Finance, gave it a Notice of Default and Termination on its Pre-Paid Forward Gold Purchase Agreement with the miner and is demanding US$25.54 million early termination fee.

It told the company it intends to seek redress through a Notice of Intention to Enforce Security pursuant to section 244 of the Bankruptcy and Insolvency Act (Canada).

Gowest said PGB has funded only US$5.6 million of US$17.6 million originally contracted for and said "PGB and Pandion have failed to act in a reasonable manner in this regard and have contributed significantly to the delay in Gowest's ability to advance the development of its Bradshaw project, including its ability to complete its proposed bulk sample,"

The company said intends to respond to PGB in due course, but "expressly disagrees" with the Notice of Default and the attempt to enforce the payment though the Bankruptcy Act.

Gowest shares were last seen down $0.125 to a 52-week low of $0.25 on the TSX Venture Exchange.