West Red Lake raises $41 million from upsized financing
West Red Lake Gold Mines Ltd. [WRLG-TSXV] said it has raised $41 million from an upsized bought deal public offering and will use the proceeds to advance its Madsen mine in northwestern Ontario. That’s up from earlier targets of $30 million and $36 million.
Funding will be used to complete the ramp-up to commercial production and to pursue growth opportunities.
The bought deal financing was comprised of 37.5 million common shares priced at 95 cents each, generating gross proceeds of $35.6 million, including the full exercise of the over-allotment option. The financing also included the sale of 3.76 million charity flow-through shares, raising an additional $5.0 million.
On Tuesday, the shares edged up 0.97% or $0.01 to $1.04. The shares trade in a 52-week range of $1.18 and 52 cents.
“We are excited for the opportunities this financing creates as we complete the ramp up of the Madsen Mine,’’ said West Red Lake President and CEO Shane Williams. “At Madsen we are developing, mining, milling and balancing priorities weekly to set up the mine for steady state operations,’’ he said.
“The additional funding accelerates specific capita projects that have the potential to result in greater output from Madsen, allowing us to capitalize on the current strong gold price environment.’’ Williams went on the say that the flow-through capital will fund drilling to support a pre-feasibility study for Rowan next year, providing West Red Lake Gold a clear near-term path to producing over 100,000 ounces of gold annually in Red Lake.’’
On August 19, 2025, West Red Lake announced the filing of its independent preliminary economic assessment (PEA) technical report for the wholly-owned Rowan project, which is also located in the Red Lake Gold District.
The Rowan property covers 31 square kilometres, and includes three past-producing mines – Rowan, Mount Jamie, and Red Summit. The PEA envisages average annual production of 35,230 ounces annually over a five-year mine life with an average mining rate of 385 tonnes per day.
The company has said multiple mills in the area with excess capacity create the opportunity to develop Rowan as a toll milling operation with initial capital of just over $70 million.
The company plans to complete a pre-feasibility study at Rowan by the third quarter of 2026. “Rowan is a high grade, relatively wide, nearly vertical deposit that starts at surface and this PEA captures how such designed-for mining characteristics lead to strong economics,’’ said Williams. “There is ample opportunity to grow the resource further at Rowan along strike, at depth and via discovery at new nearby targets, but we ideally want to do that work while turning this asset into a mine sending high-grade mineralization to an operating mill in the area and potentially generating significant revenue for the company.’’ Rowan is estimated to hose 196,747 ounces of contained gold at a grade of 12.87 g/t in the indicated category and 118,155 ounces, grading 8.73 g/t in the inferred category. Rowan is planned as an underground operation mined by longhole stoping methods, tapping a deposit that is near vertical and 2.0 metres wide.
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