West Red Lake Gold Mines has banked $20 million for development expenses of its Madsen Mine in Red Lake.
The Vancouver company is restarting the Madsen Mine this year, launching into gold production in June. First gold will be in March when a bulk sample is processed at the on–site mill.
A Feb. 25 company news release said the funds are sourced through a public offering of charity flow-through units. Each unit is comprised of one common share of West Red Lake.
The Madsen Mine, a historic mining asset in the northwestern Ontario gold mining camp, is already built out and was once operated by now-defunct Pure Gold, which went bankrupt after 14 months of production. West Red Lake picked up the asset in a bankruptcy sale in 2023.
The mine is 10 kilometres outside of the town of Red Lake.
The company has painted a conservative picture of what the mine will look like in a pre-feasibility study released in January. It showed an initial seven-year mine life with 67,600 ounces of annual gold production over six years.
“We were happy to welcome significant interest to this financing, which shows support for West Red Lake Gold and highlights demand from investors for companies moving into production in an excellent gold market,” said Shane Williams, company president-CEO, in a statement.
“A strong treasury bolsters our abilities at site during ramp up, mitigates potential risks, and supports investor confidence. We look forward to providing ongoing updates from the mine, where underground development and test mining are progressing well.”
