West Red Lake Gold Announces a US$20 Million Private Placement of Gold Linked Notes - West Red Lake Gold
Summary
TORONTO, February 27, 2024 West Red Lake Gold Mines Ltd. (West Red Lake Gold or WRLG or the Company) (TSXV: WRLG) (OTCQB: WRLGF), is pleased to announce that it has entered into an agreement with Raymond James Ltd. to act as sole bookrunner and lead agent, on behalf of a syndicate of agents (together, the Agents), in connection with a marketed best efforts private placement of units of the Company (each, a Unit) at a price of US$1,000 per Unit (the Offering Price) for gross proceeds of US$20,000,000 (the Offering). Any excess proceeds by which the gold price exceeds the Floor Price will be paid to investors as a premium.Frank Giustra, who holds 11.07% of the outstanding Common Shares, has indicated his intent to participate in the Offering by subscribing for 3,700 Units representing US$3.7 million in gross proceeds.The net proceeds of the Offering are expected to be used to continue to advance the development of a restart plan for the Madsen Gold Mine as well as for working capital and general corporate purposes.Shane Williams, CEO of West Red Lake Gold, commented, The Offering marks another key step in the financing process as we focus our efforts on the development of a derisked and robust restart plan for the Madsen Gold Mine while minimizing dilution to our shareholders.The Units may be offered: (i) in Canada, to accredited investors in each of the provinces and territories of Canada; (ii) in the United States, to qualified institutional buyers (QIBs) and accredited investors, as defined in Rule 144A(a)(1) and Rule 501(a) of Regulation D, respectively, under the United States Securities Act of 1933, as amended (the U.S. Securities Act). The securities have not been registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.West Red Lake Gold Mines Ltd. is a mineral exploration company that is publicly traded and focused on advancing and developing its flagship Madsen Gold Mine and the associated 47 km2 highly prospective land package in the Red Lake district of Ontario. WRLG 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.ON BEHALF OF WEST RED LAKE GOLD MINES LTD.FOR FURTHER INFORMATION, PLEASE CONTACT:or visit the Companys website at https://www.westredlakegold.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.Certain information included in this press release constitutes forward-looking information under applicable securities legislation including statements relating to the Closing Date, the Companys ability to enter into a definitive agreement with the Agent, the future price of gold, Mr. Giustra participating in the Offering, the Company making a Change of Control offer for the Notes, and the intended use of proceeds and the expected closing date.