West Red Lake Gold Mines has secured over C$68 million ($49.34 million) to restart production at the Madsen Gold Mine in Ontario. The financing package includes a $35 million loan facility from Nebari Natural Resources Credit Fund II and a $20 million bought-deal equity offering led by Raymond James.
The loan facility will bear interest at SOFR plus 8% over 42 months, pending documentation and due diligence. The equity offering consists of nearly 29 million units priced at C$0.69 each, each unit containing a common share and a purchase warrant.
Proceeds from the financing will support the Madsen Mine restart plan, working capital, and corporate purposes. Since acquiring the mine in June 2023, West Red Lake Gold has conducted 40,000 meters of drilling and engineering studies for a pre-feasibility study.
The test mining program will extend into early 2025, leading up to full mining production, with the operational mill processing stockpiled samples. The mine is expected to be commissioned in 2025. President and CEO Shane Williams emphasized that this financing will allow the company to complete the pre-feasibility study and ongoing projects, positioning them well for the mine’s restart and ramp-up.
