Madsen restart on track for 2025 as West Red Lake shores up C$68m
The Madsen gold mine, in Ontario, is set for a 2025 restart as owner West Red Lake has secured financing to recommence production.
The TSX-V-listed company has secured commitments totalling more than C$68-million, which along with existing cash resources will fund the restart.
The financing package comprises a $35-million (about C$48-million) loan facility with Nebari Natural Resources Credit Fund II and a C$20-million bought-deal equity offering of 28.99-million units at C$0.69 each.
With the funding in hand, the company will be completing the Madsen prefeasibility study (PFS), the ongoing test mining programme, the proactive capital projects under way at the mine site, and the restart and ramp-up of the mine, including working capital and corporate requirements.
“We worked closely with our partners to develop a finance package that addresses the balance of the capital required for Madsen, as currently estimated in our detailed internal mine plan, and preserves strong upside from the Madsen mine for West Red Lake Gold shareholders,” said CEO Shane Williams on Thursday.
West Red Lake acquired the Madsen project in June 2023. The company has completed 40 000 m of definition drilling alongside significant mine engineering and multiple capital projects and studies to inform a PFS that is targeted for release within a month.
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