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West Red Lake Gold Mines Closes $25,000,150 Bought Deal Offering in Connection With Acquisition of Madsen Gold Mine
VANCOUVER, British Columbia, May 09, 2023 (GLOBE NEWSWIRE) -- West Red Lake Gold Mines Ltd. (“West Red Lake” or the “Company”) (TSXV: WRLG) is pleased to announ
About this update from West Red Lake Gold Mines Ltd
[{"type":"text","content":" VANCOUVER, British Columbia, May 09, 2023 (GLOBE NEWSWIRE) -- West Red Lake Gold Mines Ltd. (“West Red Lake” or the “Company”) (TSXV: WRLG) is pleased to announce, further to its news release dated April 17, 2023, the closing of the previously announced bought deal financing of 70,829,000 subscription receipts (the “Subscription Receipts”) of West Red Lake, at a price of $0.35 per Subscription Receipt (the “Issue Price”), together with 600,000 common shares of West Red Lake (the “Concurrent Shares”) at the Issue Price, for aggregate gross proceeds of $25,000,150 (the “Offering”). The Offering was led by Canaccord Genuity Corp., as sole underwriter (the \"Underwriter\"), and included exercise of the Underwriter’s over-allotment option granted in connection with the Offering. The Offering was conducted in connection with the previously announced acquisition (the “Acquisition”), whereby the Company will acquire the Madsen Gold Project through the acquisition of all of the issued and outstanding shares of Pure Gold Mining Inc. (“Pure Gold”), subject to, among other things, approval of the British Columbia Supreme Court in Pure Gold’s ongoing proceedings pursuant to the Companies Creditors Arrangement Act. The Subscription Receipts were issued pursuant to a subscription receipt agreement (the “Subscription Receipt Agreement”) entered into among the Company, the Underwriter, and Odyssey Trust Company as subscription receipt agent. Pursuant to the Subscription Receipt Agreement, the gross proceeds of the Offering, less the proceeds received from the sale of the Concurrent Shares (the “Escrowed Funds”), will be held in escrow pending satisfaction of certain conditions, including but not limited to the satisfaction of certain conditions precedent to completion of the Acquisition (the “Escrow Release Conditions”). Upon satisfaction of the Escrow Release Conditions, each Subscription Receipt will automatically convert, for no additional consideration, into one common share of the Company (“Underlying Shares”), subject to adjustments. If the Escrow Release Conditions have not been satisfied on or prior to August 7, 2023, subject to an extension by the Underwriter, the holders of Subscription Receipts will be returned a cash amount equal to the aggregate Issue Price of the Subscription Receipts and any interest that has been earned on the E...