WRLG Announces US$20 Million PP of Gold Linked Notes Today West Red Lake Gold Mines Ltd. (WRLG.v or WRLGF for US investors) just announced that it is planning to raise US$20 million through a private placement.
The placement involves selling units containing gold-linked notes and common share purchase warrants.
These notes, which offer a 12% annual coupon, will mature in 2029 and will be backed by gold placed in escrow starting from 2026.
This financing is aimed at advancing the development of the Madsen Gold Mine and supporting general corporate purposes. The offering is expected to close around March 19, 2024, subject to standard closing conditions.
Billionaire mining mogul Frank Giustra, who currently holds 11% of the outstanding shares of WRLG, has shared that he plans to participate in the Offering by subscribing for 3,700 Units representing US$3.7 million in gross proceeds.
Giustra's participation demonstrates his confidence in the company, while WRLG's issuance of gold-linked notes underscores its belief in its future gold production capabilities.
WRLG's Madsen Mine is a fully permitted gold mine located in Canada's high-grade gold district. It boasts top-tier assets in the Red Lake area, with significant exploration potential
The mine holds a deep value opportunity with over C$350 million invested to date and substantial underground surface infrastructure, including a state-of-the-art 800+ tonne/day mill.
As of June 2023, the indicated mineral resource for the project stands at 1.65 million ounces of gold, with an average grade of 8.9 grams per tonne (g/t). This resource is contained within approximately 6.9 million tonnes. Additionally, the inferred category holds 0.37 million ounces of gold at an average grade of 6.3 g/t within approximately 1.8 million tonnes.
The raised funds are expected to play a pivotal role in advancing the Madsen Project, facilitating further exploration, operational enhancements, and overall project development, ultimately driving WRLG closer to its production goals.
Full news here: https://westredlakegold.com/west-red-lake-gold-announces-a-us20-million-private-placement-of-gold-linked-notes/
Posted on behalf of West Red Lake Gold Mines Ltd.