West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has closed a bought deal public offering for total gross proceeds of approximately CA$41 million. The financing included 37,526,800 common shares issued at CA$0.95 per share for proceeds of CA$35,650,460, and 3,760,000 charity flow-through shares issued at CA$1.33 per share for proceeds of CA$5,000,800. Raymond James Ltd. acted as sole underwriter and bookrunner for the offering.
The company intends to use the net proceeds from the common shares to advance development at the Madsen Gold Mine. According to West Red Lake, these funds will accelerate key capital projects to support the mine's ramp-up to commercial production, and provide general working capital. Development efforts include underground expansion, equipment procurement, and upgrades to infrastructure such as ventilation systems, a cemented rock fill (CRF) plant, and a shaft-skipping system to increase haulage efficiency.
Proceeds from the charity flow-through shares will be allocated to qualifying Canadian exploration expenditures, with a primary focus on the Rowan Project. Exploration plans at Rowan include infill drilling, engineering work, and environmental studies to support a Pre-Feasibility Study expected in 2026.
President and CEO Shane Williams stated in a company news release, "We are excited for the opportunities this financing creates as we complete the ramp up of the Madsen Mine." He noted that the additional capital would enable the company to accelerate development activities and optimize output at Madsen, while also advancing exploration at Rowan.
A prospectus supplement dated September 17, 2025, was filed with Canadian securities regulators in connection with the offering. The securities were not registered under the United States Securities Act of 1933 and are not being offered or sold in the United States.
Capital Targets: Advancing Madsen and Unlocking Rowan
The newly raised capital will play a direct role in supporting West Red Lake Gold's operational priorities. At Madsen, the company is continuing its transition from restart to full-scale production. This includes expanding mine infrastructure, finalizing the 2026 mine plan, and increasing stope development to support steady-state operations.
The capital will also help finance the deployment of recently delivered equipment, including haul trucks and bolters, and complete projects such as the CRF backfill system and shaft upgrades. The company produced 11,800 ounces of gold between January and August 2025, with gold recoveries averaging 95% during that time.
At the Rowan Project, the exploration-focused portion of the funding will support a 5,000-meter drill program aimed at converting inferred resources to the indicated category and bringing the 006 and 013 veins back into mine plan consideration. These two veins are positioned much closer to the proposed decline portal and could potentially put mining crews into ore six months earlier than with the current PEA design.
If successful, this would effectively add to the existing 5-year mine life at Rowan and is expected to have a positive impact on NPV of the project. The Rowan deposit currently has an indicated resource of 196,747 ounces (“oz”) of gold grading 12.78 grams per tonne (“g/t”) within 478,707 tonnes, with an additional inferred resource of 118,155 oz of gold grading 8.73 g/t within 421,181 tonnes.
Gold at a Turning Point as Demand Surpasses Supply
Gold prices continued to surge in 2025, fueled by economic uncertainty, tightening supply, and shifting investor sentiment. Chris Reilly of RiskHedge reported on September 16 that gold had risen over 40% year-to-date, breaking above US$3,700 per ounce. He noted that if current trends hold, 2025 could mark gold's best annual performance since 1979. Reilly emphasized gold's resilience, describing it as a long-term asset not tied to trade flows or economic growth.
On September 17, Gold Switzerland's Matthew Piepenburg linked gold's rise to declining confidence in fiat currencies. He cited gold's Tier-1 reclassification by the Bank for International Settlements as a driver of renewed institutional interest. Piepenburg also pointed to concerns about U.S. fiscal policy as prompting global portfolio shifts toward gold.
Supply constraints have added to the rally. A September 18 report from Ahead of the Herd noted that while mine production hit a record 3,661.2 tonnes in 2024, demand reached 4,974.5 tonnes, leaving a 1,370-tonne gap filled by recycled gold. The report called this a sign of "peak gold," with mined supply unable to meet consumption despite efforts to access higher grades.
Analysts Cite Strong Progress and Undervalued Potential
On June 26, 2025, Taylor Combaluzier of Red Cloud Securities reiterated a Buy rating on West Red Lake Gold with a price target of CA$2.50. At the time, shares were trading at CA$0.88, reflecting a potential return of 184%. In a July 9 update, Combaluzier reviewed the Preliminary Economic Assessment for the Rowan Project, which outlined a five-year underground operation producing 35,000 ounces of gold annually at a diluted head grade of 8 grams per tonne and a recovery rate of 97%. The study projected an after-tax Net Present Value of CA$125 million and a 41.9% internal rate of return, assuming a US$2,500 per ounce gold price. He emphasized Rowan's proximity to the Madsen mill as a logistical strength and noted the potential for a hub-and-spoke model incorporating Rowan and the Fork deposit.
In a July 9 update, Combaluzier provided additional detail on the Rowan Project's Preliminary Economic Assessment, which outlined a five-year underground operation producing 35,000 ounces annually at a diluted head grade of 8 grams per tonne and 97% recovery. The project carried a post-tax Net Present Value of CA$125 million and a 41.9% internal rate of return at a gold price of US$2,500 per ounce. He noted the initial capital requirement of CA$70.4 million, total project costs of CA$176.2 million, and emphasized Rowan's proximity to the Madsen mill as a key logistical strength.
Cantor Fitzgerald analyst Matthew O'Keefe reaffirmed a Buy rating and CA$2.20 target price, representing 124% upside from the CA$0.98 share price at the time.
He reported mill throughput between 500 and 800 tonnes per day with 94% recovery, consistent with expectations, and noted that stope mining had commenced in August. That same day, Clark highlighted the same production results and emphasized the strong grades from sill development averaging 8.9 grams per tonne, a combined head grade of 5 grams per tonne, and tighter drill spacing to improve modeling. Clark also reported a 15% increase in share price over five trading days following the company's operational update.
Chen Lin, in his August 7 edition of What is Chen Buying? What is Chen Selling?, stated that the company "reported very good progress" and noted that shares were "rebounding nicely" in response to its updates.
Jeff Clark of The Gold Advisor echoed institutional support in his July 24 commentary, citing Summit Royalty's US$9.9 million purchase of a 1% net smelter returns royalty on the Madsen Mine from Sprott Resource Lending as "a good sign from an institutional lender."On August 14, Clark reported further high-grade definition drilling at South Austin, including 36.85 grams per tonne over 6.9 meters, calling it "a rich hole by any standard."
In an August 15 article, Robert Sinn of Goldfinger Capital praised the company's strong July performance, noting that mill operations were running between 500 and 800 tonnes per day at 94% recovery. He quoted VP of Corporate Communications Gwen Preston, who said the strong grades were a positive surprise due to lower confidence in that part of the geological model. Preston added that the company would delay declaring commercial production until more grade data was available to inform longer-term guidance. Sinn also highlighted the significance of the South Austin Zone, which Preston described as "the future of the Madsen Mine," with development activity focused on expanding access. Preston further noted infrastructure upgrades underway, including expanded shaft capacity and installation of a cemented rock fill plant, and said the company was working toward a main board listing in Canada, with a potential U.S. listing in 2026.
On September 5, John Newell of John Newell & Associates offered a similarly positive assessment, stating that West Red Lake Gold had secured a dominant land position in the Red Lake gold district. He noted that the acquisition of the Madsen Mine and consistent exploration results had renewed investor interest. "The stock has spent years building a long base," he wrote, "and rising volume now points to a potential breakout."
On September 12, Cantor Fitzgerald analyst Matthew O'Keefe reaffirmed a Buy rating and CA$2.20 target price, representing 124% upside from the CA$0.98 share price at the time. O'Keefe noted that Madsen had produced 5,350 ounces of gold through June, with the mill operating at 650 tonnes per day and 95% recovery, and trials at 800 tonnes per day completed. He emphasized over 150 kilometers of definition drilling and significant progress on shaft refurbishment, cemented rock fill installation, and underground equipment deliveries. Financially, he reported second-quarter revenue of CA$24.3 million, gross profit of CA$8.6 million, net income of CA$3.5 million, and CA$5.9 million in operating cash flow. West Red Lake ended the quarter with CA$23.7 million in cash and CA$1.7 million in working capital. O'Keefe wrote that the company was "cash flow positive in Q2/2025 and should continue and build its working capital position in the months ahead."
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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO)
He also reviewed the Rowan Project PEA, which mirrored previous findings of CA$125 million in post-tax Net Present Value and a 42% internal rate of return at US$2,500 gold. At a US$3,250 price, the project's value increased to CA$239 million with an 82% internal rate of return. O'Keefe concluded, "the high-grade nature of the mine with its significant upside potential should ultimately drive a premium valuation," noting that the stock traded at 0.4x net asset value compared to peer multiples between 0.8x and 1.0x.
Ownership and Share Structure
According to Refinitiv, strategic investor Sprott Resource Lending Corp. holds about 8% of West Red Lake Gold. Institutions own about 30%, while management, insiders, and advisors hold around 10%. The remaining shares are held by retail investors.
The company's market capitalization is CA$366.98 million, with a 52-week stock price range of CA$0.52 to CA$1.18.
Important Disclosures:
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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