West Red Lake Gold Mines (TSXV: WRLG; OTCQB: WRLGF) has closed its US$22.3 million gold-linked notes offering announced earlier this month. The company issued 22,340 units priced at US$1,000 per unit. Each unit contains gold-linked notes totalling US$1,000 and 710 common share purchase warrants. Each warrant entitles the holder to purchase one common share of West Red Lake at a price of C$0.95 per share until March 19, 2029.
The company has plans to issue up to an additional 4,826 units for gross proceeds of up to US$4.8 million, subject to the approval of the TSX Venture Exchange, to insiders under the terms of the indenture. The additional units will have the same terms as the original offering.
The notes bear a 12% annual coupon and will mature on Dec. 31, 2029.
West Red Lake intends to use the proceeds of the offering to advance the Madsen gold mine toward restart. Commercial production is expected in 2025. The former producing property is located in the Red Lake gold camp in northwestern Ontario.
Visit www.WestRedLakeGold.com for more information.
