West Red Lake Gold Mines has raised $76.7 million to finance the restart of the Madsen Mine in Red Lake
The Vancouver gold company wants to put Madsen back into production sometime in 2025.
The financing package is made up of a $48-million loan facility from Nebari Natural Resources Credit Fund II and $28,750,000 million bought deal financing led by Raymond James for the sale of 41,666,800 units of the company each priced at $0.69. Each unit is comprised of one common share.
The bought deal was originally set last month at $20 million and subsequently raised to $25 million.
The financing comes two years after the previous operator, Pure Gold, shuttered the mine and entered creditor protection. West Red Lake acquired the mine and 47 square kilometres of ground outside the town of Red Lake in 2023.
West Red Lake has carried out 40,000 metres of definition drilling around the ore body and has started test mining through bulk sampling. Engineering and other technical work is underway to produce a pre-feasibility study, which is due out shortly.
Madsen contains a current indicated gold resource of 1.7 million ounces at 7.4 grams per tonne.
With the financing in place, the company said on Oct. 17 that once the pre-feasibility study comes out, it will work toward making a formal mine restart decision.
Test mining will continue into the first quarter of 2025 followed by a transition into production mining.
