West Red Lake Gold Mines Ltd. Closes $15,080,000 Upsized Brokered Private Placement of Units

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VANCOUVER, British Columbia, Nov. 28, 2023 (GLOBE NEWSWIRE) -- West Red Lake Gold Mines Ltd. (“West Red Lake” or the “Company”) (TSXV: WRLG) is pleased to announce that, further to its news releases dated November 6, 2023 and November 7, 2023, the Company has closed its brokered private placement offering (the “Offering”) of 29,000,000 units of the Company (each, a “Unit”) at a price of $0.52 per Unit (the “Offering Price”) for gross proceeds of $15,080,000, which includes the exercise in full of the Agents’ option.

The Offering was conducted pursuant to the terms and conditions of an agency agreement entered into by the Company, Canaccord Genuity Corp. ("Canaccord") and Eight Capital (together with Canaccord, the “Agents”).

Each Unit is comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant of the Company (each, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.68, subject to adjustment in certain events, until November 28, 2026.

The net proceeds received from the Offering will be used to advance the Company’s mineral properties in Ontario, as well as for working capital and general corporate purposes.

Certain insiders of the Company acquired Units pursuant to the Offering and as such a portion of the Offering is considered a related party transaction with the meaning of TSX Venture Exchange (“TSXV”) Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”).The Company is relying upon the exemption from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the shares subscribed for, nor the consideration paid for the shares, exceeds 25 per cent of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Offering because the details of the participation therein by related parties of the Company were not settled until shortly prior to closing of the Offering and the parties wished to close on an expedited basis for business reasons.