West Red Lake Gold Announces Closing $33 Million Bought Deal Public Offering Including the Full Exercise of the Over-Allotment Option

VANCOUVER, British Columbia, May 16, 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 it has closed its previously announced public offering (the “Offering”) of 31,944,700 units (the “Units”) and 11,236,000 charity-flow through units (the “Charity Flow-Through Units”) of the Company at a price of C$0.72 per Unit (the “Unit Issue Price”) and C$0.89 per Charity Flow-Through Unit (the “Charity Flow-Through Issue Price”), respectively, for aggregate gross proceeds to the Company of C$33,000,224 million, including the full exercise of the over-allotment option. The Offering was led by Raymond James Ltd., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively, the “Underwriters”).

Each Unit is comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant, (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share for an exercise price of C$1.00 per share for 24 months from the closing of the Offering.

Each Charity Flow-Through Unit is comprised of one Common Share (a “Flow-Through Unit Share”) and one Warrant, issued as “flow-through shares” within the meaning of the Income Tax Act (Canada). Upon the exercise of the Warrants issued as part of the Flow-Through Units, the underlying Common Shares will not be issued as “flow-through shares” within the meaning of the Income Tax Act (Canada).

The net proceeds pursuant to the issuance of the Units 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. The gross proceeds pursuant to the issuance of the Charity Flow-Through Units will be used to incur qualifying Canadian development expenses on the Company’s assets.

In connection with the Offering, the Company has filed a prospectus supplement (the “Supplement”) dated May 9, 2024, to the Company’s short form base shelf prospectus dated April 30, 2024 (the “Shelf Prospectus”), with the securities regulatory authorities in each of the provinces of Canada (except Quebec). Copies of the Shelf Prospectus and the Supplement can be found on SEDAR+ at www.sedarplus.ca. The Shelf Prospectus and the Supplement contain important detailed information about the Company and the Offering. Prospective investors should read the Supplement and the Shelf Prospectus and the other documents the Company has filed on SEDAR+ at www.sedarplus.ca before making an investment decision.