West Red Lake closes C$25m offering in connection with Madsen buy
Mineral exploration company West Red Lake Gold Mines (WRLG) on Tuesday announced it had closed the bought-deal finance of C$25-million that was announced as part of its acquisition of the Madsen gold mine, in Ontario.
The bought deal financing comprised 70 829 000 subscription receipts of West Red Lake, at C$0.35 each, together with 600 000 common shares at the issue price.
WRLG is acquiring the Madsen project by buying troubled miner Pure Gold.
Also referred to as the PureGold mine, Madsen was placed in care and maintenance in October, after Pure Gold Mining failed to secure additional funds to keep the mine operational. The company filed for creditor protection a couple of days later.
WRLG previously described the acquisition of PureGold Mining as transformative for the company.
"The acquisition of the Madsen mine is a major step, and positions us as a leader in Red Lake gold exploration and development.
"This transaction is highly accretive to WRLG shareholders. The path forward involves defining a critical mass of high-grade reserves and resources, optimizing the project for sustainable cash flow, and executing on the vision. This includes conducting infill drilling, resource expansion, regional exploration, underground development, restart planning, engineering studies, and maintaining a strong focus on operability, community benefits, and investment in people and infrastructure. With a wealth of targets near the Madsen mine, alongside regional prospects and those within our existing Rowan project, we are confident that the brightest days for our consolidated portfolio are just ahead,” WRLG CEO and director Tom Meredith said previously.
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