West Red Lake to list gold-linked notes, warrants
2024-09-05 10:40 ET - News Release
Mr. Shane Williams reports
WEST RED LAKE GOLD ANNOUNCES LISTING OF GOLD-LINKED NOTES AND WARRANTS
West Red Lake Gold Mines Ltd. has received conditional approval from the TSX Venture Exchange to list the unsecured gold-linked notes and common share purchase warrants that were previously issued by the company in a private placement of units disclosed in news releases of March 20, 2024, and April 4, 2024. An aggregate of 27,165,631 notes, in an aggregate principal amount of $27,165,631 (U.S.), and 19,287,598 warrants were issued.
The notes represent unsecured obligations of the company that bear interest at 12 per cent per annum and mature on Dec. 31, 2029. Commencing Jan. 1, 2026, the company will cause gold to be placed in escrow on a quarterly basis into a gold trust account. The company will reduce the aggregate principal amount of the notes on a quarterly basis, commencing on March 31, 2026, in accordance with the payment schedule set forth in a trust indenture dated March 19, 2024, between the company and TSX Trust Company (as trustee). The notes will amortize based on a guaranteed floor price of $1,800 (U.S.) per ounce of gold. Any proceeds received from the sale of escrowed gold in excess of the floor price will be paid to holders as a premium.
The company anticipates that the notes and warrants will commence trading on the TSX-V on or about Sept. 9, 2024, under the symbols WRLG.NT and WRLG.WT.A, respectively. The ISIN (international securities identification number) and the Cusip number of the notes are CA95556LAA94 and 95556LAA9, respectively. The ISIN and the Cusip number of the warrants are CA95556L1351 and 95556L135, respectively.
The notes are governed by the terms of the note indenture and the warrants are governed by the terms of a warrant indenture dated March 19, 2024, between the company and Odyssey Trust Company (as warrant agent). Copies of the note indenture and warrant indenture are available under the company's profile on SEDAR+.
About West Red Lake Gold Mines Ltd.
West Red Lake Gold Mines is a mineral exploration company that is publicly traded and focused on advancing and developing its flagship Madsen gold mine and the associated 47-square-kilometre highly prospective land package in the Red Lake district of Ontario. The highly productive Red Lake gold district of Northwestern Ontario, Canada, has yielded over 30 million ounces of gold from high-grade zones and hosts some of the world's richest gold deposits. West Red Lake Gold Mines also holds the wholly owned Rowan property in Red Lake, with an expansive property position covering 31 square kilometres, including three past-producing gold mines -- Rowan, Mount Jamie and Red Summit.
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