West Red Lake Gold Mines Completes $390,840 Financing
Toronto, Ontario (FSCwire) - West Red Lake Gold Mines Inc. (“West Red Lake Gold” or the “Company”) (CSE: RLG) (FWB: HYK) (OTC: HYLKF) announces that it has completed a non-brokered private placement of common share units and flow through units for aggregated gross proceeds of $390,840.
West Red Lake Gold issued 1,816,800 common share units (the “Common Share Units”) at a price of $0.05 per Common Share Unit for aggregated proceeds of $90,840 and 6,000,000 “flow through” units (the “Flow Through Units”) at a price of $0.05 per Flow Through Unit for aggregated proceeds of $300,000. Each Common Share Unit consists of one common share in the capital of the Company and one common share purchase warrant (the “Warrant”). Each Flow Through Unit consists of one common share in the capital of the Company issued on a “flow through” basis pursuant to the Income Tax Act (Canada) and one half of a Warrant. Each Warrant issued in connection with the Common Share Units and Flow Through Units entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period of 18 months from the date of issuance.
West Red Lake Gold also issued 1,977,100 common shares at $0.05 per common share for $98,855 in consideration for services, financing fees and a property payment.
In connection with the financing, West Red Lake Gold paid finders’ fees consisting of $9,147.35 in cash and 350,900 common shares in the capital of the Company to qualified registrants. As a result of the financing, Accilent Capital Management Inc., a principal shareholder of the Company, through its involvement as a finder and subscriptions of Flow Through Units and Common Share Units through its affiliate Pavilion Flow-Through L.P., has increased its direct and indirect holding of the voting securities of the Company from 25.1% to 33.1% on a fully diluted basis.
Net proceeds from the Common Share Units will be used for general corporate purposes. Gross proceeds from the Flow Through Units will be used by the Company for exploration expenditures on its 3100 hectare property package containing 3 former producing gold mines located within the Company's West Red Lake Project in the prolific Red Lake Gold District of Northwest Ontario.
