West Red Lake Gold announces final drawdown of US$12.5 Million under Nebari Credit Facility
Press Release
West Red Lake Gold Mines Ltd. (“West Red Lake Gold” or the “Company”) (TSXV: WRLG) (OTCQB: WRLGF) announces that it has drawn the remaining US$12.5 million (“Final Tranche”) of its previously announced US$35 million credit facility (the “Credit Facility”), with Nebari Natural Resources Credit Fund II LP (“Nebari”).
The Credit Facility was entered into on December 31, 2024 and announced on January 2, 2025 [see https://westredlakegold.com/west-red-lake-gold-closes-us35-million-credit- facility-with-nebari-and-announces-drawdown-of-us15-million/ ], with the first drawdown of US$15 million received on December 31, 2024 (“Tranche 1”) and the second tranche of $7.5 million announced on March 19, 2025 (“Tranche 2”).
The proceeds from the Final Tranche will be used for: 1) completing the remaining capital costs to restart the Madsen Mine, and 2) other corporate, exploration and working capital expenses.
Repayment of 50% of principal outstanding via fixed straight-line amortization commences on the 15th month following the draw-down of Tranche 1. The remaining 50% of borrowed funds are due on the maturity date. The Credit Facility may be repaid prior to maturity at any time subject to the additional payment of a make-whole threshold.
Interest will accrue on the advanced outstanding principal amount of the loan based on a floating rate per annum equal to the sum of: (i) the three-month term SOFR reference rate administered by CME Loan Party Benchmark Administration Limited (CBA) (the “Term SOFR”), as determined on the first date of each calendar month; and (ii) 8.0% per annum, provided that, if the Term SOFR is less than 4.0%, it shall be deemed to be 4.0%.
In addition, the Company is paying to Nebari an administration fee of US$30,000 per annum and an arrangement fee in the amount of 1.5% of the funded amount for each tranche, further details set out in the Loan Agreement.
No finder’s fees are payable in connection with the Credit Facility. The maturity date of the Credit Facility will be June 30, 2028.
In connection with drawing the Final Tranche, the Company issued 4,158,875 non- transferable common share purchase warrants (the “Final Tranche Loan Bonus Warrants“) at an exercise price of CAD$0.85 (using a USD/CAD exchange rate of 1.38) per common share, which expire on June 30, 2028, subject to a pro-rata reduction: if the funded amount is prepaid in whole or in part, then a pro rata number of the total Final Tranche Loan Bonus Warrants issued in relation to the Final Tranche will have their term reduced to the later of one year from the date of issuance of the Warrants and 30 days from the reduction, in accordance with TSXV policies. The Lender will receive cash compensation for any pro-rata reduction.
The Final Tranche Loan Bonus Warrants are subject to a statutory hold period of four months and one day under applicable securities laws. The Final Tranche Loan Bonus Warrants represent the Canadian equivalent of 20% of the loan amount being drawn in respect of the Final Tranche divided by a Canadian dollar amount equal to a 30% premium to the 20-day VWAP of the Company’s share price, subject to compliance with TSXV policies.
Nebari is at arms-length to the Company and currently owns 12,718,185 common share purchase warrants issued in connection with the Tranche 1, Tranche 2 and Final Tranche Loan Bonus Warrants. Nebari does not own any other securities of the Company.
ABOUT WEST RED LAKE GOLD MINES
West Red Lake Gold Mines Ltd. is a mineral exploration company that is publicly traded and focused on advancing and developing its flagship Madsen Gold Mine and the associated 47 km2 highly prospective land package in the Red Lake district of Ontario. The highly productive Red Lake Gold District of Northwest Ontario, Canada has yielded over 30 million ounces of gold from high-grade zones and hosts some of the world’s richest gold deposits. WRLG also holds the wholly owned Rowan Property in Red Lake, with an expansive property position covering 31 km2 including three past producing gold mines – Rowan, Mount Jamie, and Red Summit.
ON BEHALF OF WEST RED LAKE GOLD MINES LTD.
“Shane Williams”
Shane Williams
President & Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Gwen Preston
Vice President Communications Tel: (604) 609-6132
Email: investors@wrlgold.com or visit the Company’s website at https://www.westredlakegold.com
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