West Red Lake Gold Closes $7,000,000 Flow-Through Private Placement

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

VANCOUVER, British Columbia, Aug. 14, 2023 (GLOBE NEWSWIRE) -- West Red Lake Gold Mines Ltd. (“West Red Lake Gold” or “WRLG” or the “Company”) (TSXV:WRLG) (OTCQB: WRLGF) is pleased to announce the closing of its previously announced non-brokered private placement (the “Offering”) for gross proceeds of $7,000,000 from the sale of 10,000,000 flow-through shares (“FT Shares”) at $0.70/FT Share.

The Company intends to use the proceeds from the Offering for the exploration and advancement of the Company’s properties in Red Lake, Ontario.

Proceeds from the sale of Flow-Through Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2023 and incurred no later than December 31, 2024, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.

Certain Insiders of the Company purchased FT Shares under the Offering, constituting, to that extent, a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities distributed in the Offering nor the consideration received for those securities, in so far as the Offering involves the directors and officers, exceeds 25% of the Company’s market capitalization. The Offering remains subject to final approval of the TSX Venture Exchange.

The connection with the financing, the Company paid an aggregate cash finders fee of $216,288.45 of which $64,800.12 was to Accilent Capital Management Inc., $55,500.06 to Red Cloud Securities Inc., $45,840.06 to Canaccord Genuity, $24,000.06 to Cypress Capital Management Ltd., $14,400.12 to PI Financial Corp., $9,900.03 to Haywood Securities Inc., $1,260 to StephenAvenue Securities Inc. and $588 to Leede Jones Gable Inc.

The securities issued under this Offering are subject to a four-month hold period ending on December 12, 2023. The securities described herein have not been, and will not be, registered under the United States Securities Act, or any state securities laws, and accordingly may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.