(via TheNewswire)
“Gold-linked Notes (GLNs) are a type of equity-based structured note,”states DBS Treasures, “Similar to Equity Linked Notes (ELNs), except the underlying [asset] is gold, rather than stocks.”
Each Offering Unit contains notes worth USD
“The Notes represent unsecured obligations of the Company, bear a 12% per annum coupon, calculated and payable quarterly in arrears, and will mature on
“The gold-linked notes are an unusual but innovative financing structure,” WRLG CFO
“We evaluated 4-5 different financing options,” continued Dhaliwal. “And found the gold-linked notes to be the best option for our existing shareholders.
Dhaliwal explained to GSN that for the next two years, the gold-linked note holders will receive 12% interest per annum, about 280% higher than theyield on a
As the debt repayment begins on
“With the gold-linked notes,” Dhaliwal continued, “You have five years expiry on the warrants. Our share price has risen about 27% since we closed the firsttranche of gold-linked notes of
“If the gold price drops to
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WRLG Gold-linked Notes Transaction Highlights
Gold placed in escrow into a gold trust account
Beginning
March 31, 2026 , principal reduced on a quarterly basis.Final payment on
December 31, 2029 .Notes will amortize based on a gold floor price of
US$1,800 /ounce.Excess proceeds (spot price - floor price) paid to investors as a premium.
The company’s flagship asset -
On April9, 2024 WRLG announced thearrival of a second underground diamond drillat the
“The addition of a second underground drill at Madsen will expedite our efforts in de-risking the resource and building a runway of high-confidence mineable inventory that will be critical during restart of mining operations,” stated
Previously announced highlights on the North and
West Red Lake Gold Intersects 27.15 g/t Au over 10.28m and 22.31g/t Au over 8.5m at
North Austin Zone –Madsen Mine (November 21, 2023 )West Red Lake Gold Intersects 47.44 g/t Au over 3.2m, 21.64 g/t Au over 7m and 296.83 g/t Au over 1m at
South Austin Zone –Madsen Mine (December 5, 2023 )West Red Lake Gold Intersects 9.15 g/t Au over 3.3m and 10.66 g/t Au over 2.6m at
North Austin Zone –Madsen Mine (February 7, 2024 )West Red Lake Gold Intersects 25.12 g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at
South Austin Zone –Madsen Mine (March 4, 2024 )
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“There were three good reasons to buy these gold-linked notes,” stated Dhaliwal. “1. You want the 12% return on your capital investment. 2. You believe the stock price of WRLG will rise above
“I’m an employee of WRLG, so my opinion is biased,” Dhaliwal concluded. “But, as an investor, it was not a difficult decision for me to participate in the gold-linked notes.”
References:
SRK Consulting . (2021). Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for thePureGold Mine ,Canada (West Red Lake Gold Mines , Ed.) [Review of Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for thePureGold Mine ,Canada .
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