August 26, 2022
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OR TO A U.S. PERSON
West Red Lake Gold Mines Inc. (“West Red Lake Gold” or the “Company”) (CSE: RLG) announces that it completed a non-brokered private placement of flow-through shares (the “Shares”) for aggregated gross proceeds of $4,100,000 (the “Offering”).
The Offering was completed as a condition precedent of a transaction with DLV Resources Ltd. (“DLV”) whereby DLV will acquire all of the outstanding common shares of the Company pursuant to a legally binding letter agreement (the “Letter Agreement”) between the Company and DLV which was signed and news released on August 16, 2022. Prior to closing of the Offering, the parties agreed to amend the Letter Agreement to reduce the minimum private placement size to $4,000,000 and to extend the date for finalizing the formal amalgamation agreement to September 15, 2022.
The Company issued 86,315,790 Shares on a “flow- through” basis pursuant to the Income Tax Act (Canada) at a price of $0.0475 per Share for aggregated gross proceeds of $4,100,000
Gross proceeds from the Offering will be used by the Company for exploration expenditures on its 3,100 hectare West Red Lake Project property located in the prolific Red Lake Gold District of Northwest Ontario. The flow-through shares are subject to a hold period expiring December 27, 2022.
The Company further announces that 1291308 B.C. LTD., a company owned and controlled by Frank Giustra, acquired 62,057,895 Shares of the Company pursuant to the Offering. Prior to the Offering, 1291308 B.C. LTD. did not own any common shares of the Company. As a result of the acquisition of securities described above, 1291308 B.C. LTD. now owns an aggregate 62,057,895 common shares of the Company, representing 22.09% of the issued and outstanding common shares of the Company after the completion of the Offering.
About West Red Lake Gold Mines
West Red Lake Gold Mines is a Toronto-based minerals exploration company focused on gold exploration and development in the prolific Red Lake Gold District of Northwest Ontario, Canada. The Red Lake Gold District is host to some of the richest gold deposits in the world and has produced 30 million ounces of gold from high grade zones. The Company has assembled a significant property position totalling 3,100 hectares in west Red Lake (the “West Red Lake Project”) which contains three former gold mines located 15 km west of the Red Lake mine complex. The Mount Jamie Mine and Red Summit Mine properties are 100% owned by the Company and the Rowan Mine property is held in a 69% – 31% joint venture with Evolution Mining Limited. The West Red Lake Project property covers a 12 km strike length along the Pipestone Bay St Paul Deformation Zone and the Company is continuing to explore the property both along strike and to depth.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release. Certain statements contained in this news release constitute “forward-looking statements”. When used in this document, the words “anticipated”, “expect”, “estimated”, “forecast”, “planned”, and similar expressions are intended to identify forward-looking statements or information. These statements are based on current expectations of management, however, they are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. West Red Lake Gold does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.