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West Red Lake Gold CFO Harpreet Dhaliwal Explains Exactly How the Gold-Linked Notes Work
(TheNewswire) April 15, 2024 – The Newswire – Global Stocks News – In ...
About this update from West Red Lake Gold Mines Ltd
[{"type":"text","content":"West Red Lake Gold CFO Harpreet Dhaliwal Explains Exactly How the Gold-Linked Notes Work\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n April 15, 2024 – The Newswire – Global Stocks News\n– In a press release dated April 4, 2024, West Red Lake Gold Mines\n(TSXV:WRLG) (OTC:WRLGF) announced that it has closed a second and\n \n \n \n final tranche of its\nprivate placement of\n \n \n \n \n \n \n gold linked\nnotes\n \n \n \n , bringing the total value of notes\nissued to US$27,165,631, equivalent to about $37 million CAD.\n \n \n \n \n “Gold-linked Notes (GLNs) are a type of equity-based\nstructured note,”\n \n \n \n states DBS Treasures\n \n \n \n , “Similar to Equity Linked Notes (ELNs), except the\nunderlying [asset] is gold, rather than stocks.”\n \n \n \n \n Each Offering Unit contains notes worth USD $1,000 and\n710 warrants. Each warrant entitles the holder to purchase one share\nof WRLG at C$0.95 until March 19, 2029.\n \n \n \n \n “The Notes represent unsecured obligations of the\nCompany, bear a 12% per annum coupon, calculated and payable quarterly\nin arrears, and will mature on December 31, 2029,” states\nWRLG.\n \n \n \n \n “The gold-linked notes are an unusual but innovative\nfinancing structure,” WRLG CFO Harpreet Dhaliwal told Guy Bennett,\nCEO of Global Stocks News (GSN). “The key advantage of this\nstructure is that in depressed equity markets it allows us to raise\nmoney with minimum share dilution.”\n \n \n \n \n “We evaluated 4-5 different financing options,”\ncontinued Dhaliwal. “And found the gold-linked notes to be the best\noption for our existing shareholders. Shane Williams, our CEO and I\npersonally invested in the gold-linked notes.”\n \n \n \n \n Dhaliwal explained to GSN that for the next two years,\nthe gold-linked note holders will receive 12% interest per annum,\nabout 280% higher than the\n \n \n \n yield on a Canada 2-year government\nbond\n \n \n \n .\n \n \n \n \n As the debt repayment begins on March 31, 2026,\ngold-linked note holders will continue to be paid 12% per annum on the\nremaining balance, until it is paid off on December 21, 2029.\n \n \n \n \n “With the gold-linked notes,&...