West Red Lake Gold Closes Second Tranche of Gold Linked Notes Offering

VANCOUVER, British Columbia, April 04, 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, March 1, 2024, and March 20, 2024, the Company has closed a second and final tranche (the “Second Tranche”) of its private placement (the “Offering”) of gold linked notes (the “Notes”), bringing the total value of Notes issued to US$27,165,631 (after issuance of the Debt Conversion Units described below).

The Company issued an additional 1,924 units (the “Offering Units”) under the Second Tranche, at a price of US$1,000 per Offering Unit, for gross proceeds of US$1,924,000. Each Offering Unit contains Notes in the aggregate principal amount of US$1,000 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.

The Notes represent unsecured obligations of the Company, 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 net proceeds of the Offering are expected to be used to continue to advance the development of a restart plan for the Madsen Gold Mine as well as for working capital and general corporate purposes.

Subject to meeting minimum listing requirements, the Company will use commercially reasonable efforts to list the Notes and Warrants issued pursuant to the Offering and underlying the Debt Conversion Units described below, following the statutory hold period. There can be no assurance that a listing for the Notes or the Warrants will be obtained, or, if obtained, that a liquid market will develop for either.