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West Red Lake Gold Signs US$95 Million Credit Facility and Gold Offtake Agreement with Centalion

WRLGF
  • West Red Lake Gold Mines Ltd. executed a binding term sheet with Gunvor USA LLC, a subsidiary of Centalion Group, for a proposed credit facility of up to US$95 million.
  • The facility involves the Company's wholly-owned subsidiaries, West Red Lake Gold Mines (Ontario) Ltd. and Red Lake Madsen Mine Ltd., acting as Borrowers.
  • Funds are intended to refinance existing secured debt with Nebari Natural Resources Credit Fund II LP on more favorable terms, including lower capital costs, extended maturity, and improved repayment flexibility.
  • Additional working capital will support ongoing development at the Madsen Mine and potential funding for the Rowan Project.
  • The Proposed Facility consists of Tranche 1 (up to US$65 million) and Tranche 2 (up to US$30 million), with Tranche 2 subject to further conditions.
  • The facility features a five-year term with a nine-month principal repayment holiday on Tranche 1 following initial disbursement.
  • Security arrangements include a parent guarantee from West Red Lake Gold and a first-lien priority ranking on the Madsen Mine and Rowan assets.
  • The interest rate is set at one-month SOFR plus a margin of 5.50%, pending final diligence and security package confirmation.
  • Gunvor will purchase 100% of gold doré produced from operations under a commercial offtake agreement.
  • The Company retains the option to prepay the facility in whole or in part without penalty, subject to five business days' prior written notice.
  • Closing is conditional on satisfactory due diligence, execution of definitive agreements, delivery of security, and receipt of necessary approvals.
  • West Red Lake Gold is advancing a district-wide hub-and-spoke strategy centered on the Madsen Mine to integrate high-grade satellite deposits like Fork and Rowan.
  • The transaction remains subject to negotiation and execution of final loan, guarantee, security, and commercial agreements.