Net proceeds have been earmarked for the advancement of a restart plan for the Madsen Gold Mine. Credit: Lightspring via Shutterstock.com.

West Red Lake Gold Mines (WRLG) has concluded its public offering, raising aggregate gross proceeds of C$33m ($24.1m), including the full exercise of the over-allotment option.

The offering consisted of 31,944,700 units and 11,236,000 charity flow-through units priced at C$0.72 and C$0.89, respectively.

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Raymond James spearheaded the offering and acted as the lead underwriter and sole bookrunner on behalf of a syndicate of underwriters.

Each unit sold comprises one common share of WRLG and one common share purchase warrant, with each warrant granting the right to acquire an additional common share at an exercise price of C$1 for a period of 24 months following the offering’s closure.

The charity flow-through units each include one common share and one warrant, with the shares being issued as “flow-through shares” as per the Income Tax Act (Canada).

On exercising the warrants, the resulting common shares will not be designated as “flow-through shares”.

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The net proceeds from the unit sales are earmarked for the advancement of a restart plan for the Madsen Gold Mine, alongside working capital and general corporate needs.

Funds raised from the charity flow-through units are intended for incurring qualifying Canadian development expenses on the company’s assets.

As part of the offering, certain management and insiders have acquired a total of 770,000 units.

In April last year, WRLG agreed to acquire Pure Gold Mining’s past-producing Madsen Gold mine and associated land package in north-western Ontario, Canada. The transaction was completed in June 2023, with WRLG purchasing all issued and outstanding shares of Pure Gold Mining.