West Red Lake upsizes placement
Canadian gold company West Red Lake on Friday announced it will increase the size of its previously announced bought-deal financing from C$20-million to C$25-million.
The TSX-V-listed firm will now issue 36.23-million units at C$0.69 each, with units comprising one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase a share at C$0.90 each for 36 months.
West Red Lake also granted to the underwriters an over-allotment option to purchase an additional 15% of the base offering, for additional gross proceeds of up to C$3.75-million.
The bought-deal offering forms part of a funding package that West Red Lake has arranged to fund the restart of the Madsen mine, in Ontario. The other component of the package is a $35-million loan from Nebari Natural Resources Credit Fund II.
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.
West Red Lake acquired Madsen 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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