West Red Lake Gold Closes US$22,340,000 of Gold Linked Notes Offering

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

VANCOUVER, British Columbia, March 20, 2024 (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 that further to its news releases of February 27, 2024 and March 1, 2024, the Company has closed US$22,340,000 of its gold linked notes offering (the “Offering”).

The Company issued 22,340 units (the “Units”), at a price of US$1,000 per Unit (the “Offering Price”) for gross proceeds of US$22,340,000. Each Unit contains gold-linked notes in the aggregate principal amount of US$1,000 (the “Notes”) and 710 common share purchase warrants (the “Warrants”). Each whole Warrant entitles the holder to purchase one common share of the Company at an exercise price of C$0.95 per share until March 19, 2029.

Up to an additional 4,826 Units for gross process of up to US$4,826,000, having the same terms as the Units issued under the Offering, are expected to be issued, subject to the approval of the TSX Venture Exchange, to insiders under the terms of the indenture, following which a news release will be issued.

The Notes represent senior unsecured obligations of the Company. The Notes bear a 12% per annum coupon, calculated and payable quarterly in arrears, and will mature on December 31, 2029. Commencing January 1, 2026, the Company will cause gold to be placed in escrow on a quarterly basis into a gold trust account. The aggregate principal amount of Notes outstanding will be reduced by the Company on a quarterly basis, commencing on March 31, 2026, and with the final payment on December 31, 2029, in accordance with the payment schedule to be set forth in the indenture that will govern the Notes. The Notes will amortize based on a guaranteed floor price of US$1,800 per ounce of gold (the “Floor Price”). Any excess proceeds by which the gold price exceeds the Floor Price will be paid to investors as a premium.

The Offering was completed pursuant to an agency agreement entered into between the Company and a syndicate of agents led by Raymond James Ltd. (the “Agents”). As consideration for services provided by the Agents in connection with the Offering, the Company agreed to pay a cash commission of up to 6% of the aggregate gross proceeds raised from the sale of units governed by the indenture.