West Red Lake Gold announces final drawdown of US$12.5 Million under Nebari Credit Facility

Core Viewpoint - West Red Lake Gold Mines Ltd. has drawn the final tranche of US$12.5 million from a US$35 million credit facility with Nebari Natural Resources Credit Fund II LP to support the restart of the Madsen Mine and other corporate expenses [1][3]. Credit Facility Details - The credit facility was established on December 31, 2024, with the first drawdown of US$15 million and a second tranche of US$7.5 million [2]. - The repayment structure includes 50% of the principal being repaid via fixed straight-line amortization starting 15 months after the first tranche drawdown, with the remaining 50% due at maturity on June 30, 2028 [4][6]. - Interest on the loan will be based on a floating rate, which includes the three-month term SOFR plus 8.0% per annum, with a minimum interest rate of 4.0% [5]. Use of Proceeds - The proceeds from the final tranche will be allocated to complete capital costs for restarting the Madsen Mine and cover other corporate, exploration, and working capital expenses [3]. Warrants Issued - In connection with the final tranche, the company issued 4,158,875 non-transferable common share purchase warrants at an exercise price of CAD$0.85, expiring on June 30, 2028 [7]. - The warrants represent 20% of the loan amount drawn in the final tranche, subject to a statutory hold period of four months and one day [8]. Company Overview - West Red Lake Gold Mines Ltd. is focused on advancing its flagship Madsen Gold Mine and holds a significant land package in the Red Lake district of Ontario, known for its high-grade gold deposits [10].