11:16 AM EDT, 10/17/2019 (MT Newswires) -- Gowest Gold (GWA.V) was up more than 7% after the company on Thursday said it made a final US$7.5 million payment to PGB Timmins Holdings to settle a prepaid forward gold purchase agreement and reached a new credit agreement with Greenwater Investment Hong Kong.

The payout meets a deadline for a final payment under the terms of a settlement between Gowest and PGB reached in August after PGB alleged the company had defaulted on some payments.

Gowest, which is developing the Bradshaw Gold Deposit in northern Ontario, said Greenwater has assumed PGB's obligations under the gold purchase agreement and advanced US$7 million to the company.

Gowest also reached an agreement with Northern Sun Mining to process bulk ore samples from Bradshaw at its Timmins, Ontario, mill.

The company's shares were last seen up C$0.02 to C$0.30 on the TSX Venture Exchange.

Price: 0.30, Change: +0.02, Percent Change: +7.14