West Red Lake Gold Mines (Ticker: WRLG.v or WRLGF for US investors) took center stage at the Metals Investor Forum last week, as Shane Williams, the President & Chief Executive Officer, unveiled the company's strategy and vision for the future. The presentation provided a unique insight into the company's recent endeavors and outlined its path to becoming a significant player in the Red Lake Region.
A New Beginning:
WRLG's journey began about a year ago when a team, including Williams and the seasoned Frank Giustra, sought to create a venture capable of emulating the success of Wheaton River and Gold Corps.
The decision to focus on the Red Lake Region was strategic, considering its promising opportunities and rich gold sector history. With the backing of key figures like Billionaire Frank Giustra, who boasts a track record in successfully navigating the gold market, West Red Lake set its sights on acquiring the Rowan and Madsen properties.
The acquisition, made at a remarkable value of six and a half million dollars in cash, 40 million shares, and a 1% NSR, positioned the company with minimal debt and a solid foundation for growth. Notably, the Madsen Mine was valued at $1B at its height and hosts over $350M of infrastructure.
Infrastructure and Opportunities:
Williams emphasized the impressive infrastructure already in place at the Madsen Project, including a new mill, underground equipment, and over 3 kilometers of development. The company holds the key advantage of having all permits ready to go, providing a smooth runway for future operations.
Williams highlighted the potential for consolidation in the Red Lake Region, presenting a unique opportunity for WRLG with its independent ownership of the region's only mill.
Learning from Challenges:
Acknowledging the challenges faced by the previous operator Williams delved into the issues of project financing, misguided decisions, and the unfortunate timing of external factors like COVID-19.
WRLG, armed with a seasoned team, is determined to learn from the mistakes of the past owner, address technical challenges, and focus on extensive drilling to unveil the true potential of the high-grade systems within the properties.
Upcoming Exploration:
The upcoming drilling efforts are poised to explore the project, possibly the key to unlocking substantial value for WRLG. The ambitious plan for the next 12-15 months involves intensive drilling, resource expansion, contributing to WRLG's goal of becoming a mid-tier producer.
Capital Structure and Future Vision:
Williams concluded by providing insights into the company's capital structure, highlighting the strong support from major shareholders, including Frank Giustra and Sprott Resource Lending.
With a strategic vision, experienced team, and a commitment to learning from past experiences, the company seems set to unlock the full potential of its properties in the Red Lake Region.
Presentation Video:
Posted on behalf of West Red Lake Gold Mines Ltd.