West Red Lake Gold Mines' (Ticker: WRLG.v or WRLGF) Vice President of Corporate Development, Amandip Singh, recently took the stage at the Deutsche Goldmesse Conference to share how the company plans to tackle the revitalization of the Madsen Gold Mine, a past-producing gold mine nestled in the Red Lake Gold District of Ontario.
Singh also doesn't shy away from highlighting the company's achievements, including its ability to raise $50 million, close two acquisitions, and conduct drilling totaling 25,000 meters.
The focal point is the acquisition of the Madsen Gold Mine. Singh describes it as a fully permitted mine with a substantial history and $350 million in infrastructure. Notably, the attention-grabbing aspect is the strategic acquisition method, involving a payment of $6.5 million in cash and $10 million in stock for an asset that once had a market cap of $1.2 billion.
Singh attributes the success of the deal to a competitive process, with Sprott Resource Lending favoring an equity-rich deal, ultimately making West Red Lake the fortunate acquirer of $350 million worth of equipment for a mere $6.5 million.
Despite the challenges faced by Madsen's previous operators West Red Lake plans to restart production by mid-2025. The company aims to execute 38,000 meters of drilling, 3.2 km of underground development, and initiate the restart plan with careful consideration of risk mitigation.
Full presentation here:
Posted on behalf of West Red Lake Gold Mines Ltd.