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West Red Lake Gold Mines Ltd V.WRLG.WT.B


Primary Symbol: V.WRLG Alternate Symbol(s):  WRLGF | V.WRLG.WT | WLGMF | V.WRLG.WT.A | V.WRLG.NT.U

West Red Lake Gold Mines Ltd. is a Canada-based mineral exploration company. The Company is focused on advancing and developing its flagship Madsen Gold Mine and the associated 47 square kilometers (km2) highly prospective land package in the Red Lake district of Ontario. The Madsen Property comprises a contiguous group of approximately 251 mining leases, mining patents and unpatented mining claims covering an aggregate area of 4,648 hectares (46.5 km2). It also holds the wholly owned Rowan Property in Red Lake, with an expansive property position covering 31 km2 including three past producing gold mines: Rowan, Mount Jamie, and Red Summit. The Rowan Property is comprised of 146 claims, including 58 patented claims, 20 leased, 65 staked crowns and three under license of occupation. The 3,100-hectare Rowan Property covers 12 km of strike length on the regional east-west trending Pipestone Bay St Paul Deformation Zone.


TSXV:WRLG - Post by User

Post by roberto146on Sep 29, 2024 12:08pm
650 Views
Post# 36245988

WRLG.NT.U

WRLG.NT.UI am trying to understand the pricing of the WRLG.NT.U 'Gold Linked' units offerred in the listing.
What do you get for 105.00? The initial offering was $USF1000 a unit, which gave you $US1000 of 'notes', but not specifically stated was the number of notes. The total of the raise was "An aggregate of 27,165,631 Notes, in an aggregate principal amount of US$27,165,631", which implies a dollar a note.
Forgettting about the 12% annual interest beginning 1/1/26, and the premium at maturity based on the then-current price of gold, the price of the notes was 'linked' to a base price of $US1800/oz gold, the approximate price of gold at the time. What is implied here (but not specified) is that the 'linkage' (but not 'backing') for each unsecured 'unit' of 1000 notes was 0.555~ of an ounce of gold.
What does one WRLG.NT.U represent? 1/1000th of 0.555 of an ounce of gold? At the original offering price of $US1000 a unit, each unit would consist of 1000 notes at $US1.00 a note. $US1000 represented 0.555 of an ounce of gold. At today's $US2700 prices, that would be $US1.4985, or about $C2.02. But WRLG.NT.U is trading at $C105.00.
How many notes are in a WRLG.NT.U? Are they priced like bonds, i.e. per $100 of base price? If so, the price should be about $C200, not $C105, unless they are selling at a 50% discount.
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