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West Red Lake commits to $22M USD pre-sale of gold

Mar 20, 2024

West Red Lake Gold Mines Ltd. has successfully closed its gold-linked notes offering, raising US$22,340,000. The Offering comprised the issuance of 22,340 units ("Units") at a price of US$1,000 per Unit, totaling gross proceeds of US$22,340,000. Included in each Unit are gold-linked notes with a principal amount of US$1,000 ("the Notes") and 710 warrants to purchase common shares ("the Warrants"). Holders of the Warrants are entitled to buy one common share of West Red Lake Gold at a price of C$0.95 per share until March 19, 2029.

The company also anticipates issuing up to an additional 4,826 Units, raising up to US$4,826,000, under the same terms as the initial Offering. This issuance is pending approval from the TSX Venture Exchange and will be announced following insider participation under the indenture's terms.

The Notes, as senior unsecured obligations of West Red Lake Gold, carry a 12% annual interest, payable quarterly in arrears, and are set to mature on December 31, 2029. Starting January 1, 2026, the Company will place gold into escrow quarterly, with the principal amount of the Notes decreasing quarterly from March 31, 2026, until the final payment on December 31, 2029, based on a set payment schedule. The amortization of the Notes will reflect a guaranteed minimum gold price of US$1,800 per ounce, with any surplus from higher gold prices paid to investors as a premium.

An agency agreement was executed with a group of agents led by Raymond James Ltd. for the Offering, where the Company agreed to a commission up to 6% of the total gross proceeds from the Offering's unit sales.

The net proceeds from the Offering will support the advancement of a restart plan for the Madsen Gold Mine, alongside working capital and general corporate purposes.

Securities issued during this private placement are subject to a four-month plus one day hold period as mandated by securities laws and TSX Venture Exchange policies. Efforts will be made to list the Notes and Warrants after this period, though listing and market liquidity cannot be guaranteed.

Insider participation in the Offering is deemed a related party transaction under TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The Company utilized exemptions from certain requirements of MI 61-101 as the transaction did not exceed 25% of the Company's market capitalization. The timing of the material change report was due to the expedited closing and recent finalization of insider participation details.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The securities are not registered under the U.S. Securities Act and may not be offered or sold in the U.S. without registration or an exemption from registration.


West Red Lake Gold Mines Ltd. is engaged in the exploration and development of the Madsen Gold Mine within a 47 km2 area in Ontario's Red Lake district, a region renowned for its high-grade gold production exceeding 30 million ounces. The Company also owns the Rowan Property in Red Lake, spanning 31 km2 and encompassing three historical gold mines – Rowan, Mount Jamie, and Red Summit.

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