EDITOR: | September 1st, 2016

West Red Lake Gold continues to attract strong investors

| September 01, 2016 | No Comments

At the beginning of August, West Red Lake Gold (CSE: RLG) issued 5.2m common shares at $0.25 per share, raising $1.3m in financing. The proceeds of this financing will be used for further exploration on the Company’s gold exploration project, located in Red Lake in Ontario.

Following this venture capital raising, the Company granted a total of 1.4m options to directors, consultants and service providers at an exercise price of $0.25.

Finally, on the 15th of August, the Company revealed that it had granted a total of 300,000 options to consultants and service providers at an exercise price of $0.26/share for a term of three years. Further it issued 200,000 common shares for $52,000 of services to the Company by several providers.

Whilst at first glance an issuance of options to pay consultants and service providers may be seen as ‘playing it safe at the expense of future shareholder returns,’ as the company is conserving cash, though at the expense of probable future shareholder dilution, West Red Lake Gold Mines has some very positive attributes. These attributes are recognised by consultants and service providers who otherwise would not have negotiated their services in return for options.

From a geological perspective, Ontario has produced over 30m oz. of gold from high grade zones. The West Red Lake Project is impressive in both size, position and mining potential. In particular the project boasts three former gold mines spans over 3,100 ha and has a strike length of 12m.

From a management perspective, there is depth of experience. Thomas Meredith, the chairman brings over thirty years of experience in junior mining to bear. Having previously serving as the CEO of Lexam VG Gold, leading the development gold projects in the Timmins region of Ontario. At VG Gold, Meredith inherited a company with a $3m market capitalisation. Cleaning up the management team, refocusing on advancing the company’s four projects, VG raised its resource base from 60,000 to 2m oz. and had a market cap of around $200m within 18 months of Meredith at the helm. Having proved his capabilities at VG, there is no reason to believe that under his stewardship, that Red Lake Gold shouldn’t be another success story.

Financially, the project is well capitalised and has the money to continue to meet its exploration targets. The Company has also managed to attract a serious gold investor in the form of GoldCorp, which provides a measure of comfort.



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