West Red Lake Gold Mines (TSXV:WRLG; OTCQB:WRLGF)announced yesterday that it was making a $10-million private placement to support its exploration efforts in Ontario. Then this morning, the company said the amount has been boosted by 30% to $13 million, thanks to strong investor demand.
What was originally meant to be an offering of approximately 19.3 million units at $0.52 per unit has now been increased to up to 25 million units at the same price. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will allow the holder to acquire one common share of West Red Lake at a price of $0.68 per share over the next 36 months.
The underwriters, led by Canaccord Genuity and Eight Capital, have also been granted a further overallotment of 4 million units to raise an additional $2 million. The closing is anticipated to occur on or about Nov. 28, 2023.
West Red Lake is a publicly traded exploration company focused on restarting the former Madsen gold mine in the Red Lake district of Ontario. The district has yielded over 30 million oz. of gold from high-grade zones and hosts some of the world’s richest gold deposits. Gold production is to begin in mid-2025.
West Red Lake 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.
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