West Red Lake Announces Financing Package to Fund Madsen Mine Restart – West Red Lake Gold Mines (OTC:WRLGF)

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

• US$35 million (approximately C$48 million) loan facility (the “Loan Facility”) with Nebari Natural Resources Credit Fund II, LP (“Nebari”) bearing interest of SOFR (Secured Overnight Financing Rate) plus 8% with a term of 42 months. A non-binding term sheet has been signed and closing of the Loan Facility remains subject to entering into definitive documentation and due diligence.
• C$20 million bought-deal equity offering of 28,986,000 units of the Company (the “Units”) at a price of C$0.69 per Unit (the “Issue Price”) led by Raymond James Ltd. (the “Offering”).

The test mining program will run into Q1 2025, after which time the mine will transition to production mining, with material stockpiled.

Bought Deal Equity Offering

The Company has entered into an agreement with Raymond James Ltd. as sole underwriter, pursuant to which Raymond James have agreed to purchase, on a “bought deal” basis, 28,986,000 units (the “Units”) of the Company at a price of C$0.69 per Unit (the “Issue Price”) for aggregate gross proceeds to the Company of C$20,000,340 (the”Offering”).

The Units will be offered under the short form base shelf prospectus (the “Base Prospectus”) of the Company dated April 30, 2024, as supplemented by a shelf prospectus supplement (the “Supplement”) to be prepared and filed in each of the provinces of Canada, other than the Province of Quebec. The Units will also be offered by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the Company and Raymond James, where the Units can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements. Copies of the Base Prospectus and the Supplement will be available on the Company’s SEDAR+ page at www.sedarplus.ca.

The Offering is expected to close on or about October 24, 2024 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV.

The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About West Red Lake Gold Mines

On behalf of West Red Lake Gold Mines Ltd.

“Shane Williams”

Shane Williams          

President & Chief Executive Officer

FOR FURTHER INFORMATION, PLEASE CONTACT:

Gwen Preston

Tel: (604) 609-6132

Email: [email protected] or visit the Company’s website at 

Neither 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.

Forward looking information

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release and the Company assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

For more information on the Company, investors should review the Company’s continuous disclosure filings that are available on SEDAR+ at www.sedarplus.ca.