West Red Lake Gold Lines Up US$95 Million to Refinance Its Nebari Debt at a Lower Cost

• West Red Lake Gold executed a binding term sheet with Gunvor USA LLC for a proposed credit facility of up to US$95 million.
• The facility comprises Tranche 1 of up to US$65 million and Tranche 2 of up to US$30 million, subject to further conditions and approvals.
• Funds are intended to refinance the existing secured debt facility with Nebari on more favorable terms.
• Tranche 1 has a 9-month principal repayment holiday within a 5-year term.
• Gunvor would purchase 100% of the gold doré produced from the operation.

Company Overview

West Red Lake Gold Mines (TSXV: WRLG | OTCQX: WRLGF) is a Canadian gold producer and developer advancing a high-grade, district-scale opportunity in the Red Lake district of Ontario. Its flagship Madsen Mine recently achieved commercial production and is the central hub of a growing multi-asset platform. The company controls a 47-square-kilometer land package in a district that has historically produced over 20 million ounces of gold from high-grade systems. It also owns the Rowan Property in Red Lake, which covers 31 square kilometers and includes 3 past-producing mines: Rowan, Mount Jamie, and Red Summit.

A Refinancing of the Nebari Facility

West Red Lake Gold executed a binding term sheet on November 2, 2026 with Gunvor USA LLC, the relevant subsidiary of Centalion Group (CY) Ltd, for a proposed credit facility of up to US$95 million. The facility is to be between Gunvor and 2 wholly-owned subsidiaries of the company, West Red Lake Gold Mines (Ontario) Ltd. and Red Lake Madsen Mine Ltd., as borrowers.

Funds advanced are intended to refinance the existing secured debt facility with Nebari Natural Resources Credit Fund II LP on more favorable financing terms. Those terms include a lower cost of capital, an extended maturity, and improved repayment flexibility.

President and Chief Executive Officer of West Red Lake Gold, Shane Williams, credits a year of dealings with Centalion for the liquidity and repayment terms on offer:

"Over the course of the year, we have built a strong business relationship with Centalion, culminating in a financing arrangement that would provide West Red Lake Gold with increased liquidity, a more competitive cost of capital and significantly improved repayment terms. This represents an important step in strengthening our financial position and providing greater flexibility to invest in our operations and advance growth opportunities across our Red Lake portfolio."

Beyond the refinancing, the facility would provide additional working capital for ongoing development at the Madsen Mine and potential funding for future development at the Rowan Project.

Two Tranches & Repayment Terms

The facility comprises Tranche 1 of up to US$65 million and Tranche 2 of up to US$30 million, with Tranche 2 advances subject to additional conditions and approvals. The term runs 5 years from the initial drawdown, and West Red Lake Gold retains the option to repay all or a portion of the outstanding amount before maturity.

No scheduled principal payments fall due on Tranche 1 for 9 months from its initial disbursement. Monthly principal amortization starts after that holiday under an agreed schedule. Interest is set at the one-month Secured Overnight Financing Rate, a US dollar benchmark lending rate, plus a margin of 5.50%, subject to final diligence and the security package.

The company may repay the outstanding amount in whole or in part without penalty. A prepayment requires at least 5 business days' prior written notice and payment of applicable outstanding fees and costs.

Security Package & Gold Offtake

West Red Lake Gold will issue a parent guarantee to Gunvor, and the borrowers will grant a first lien and priority ranking, senior security on the Madsen Mine and Rowan assets.

Alongside the loan, a commercial agreement provides for Gunvor to purchase 100% of the gold doré, the unrefined gold bars a mine pours before refining, produced from the operation.

Tranche 2 & the Rowan Project

West Red Lake Gold is advancing a district-wide hub-and-spoke strategy centered on the operating Madsen Mine and mill. Alongside continued underground development at Madsen, the company is advancing additional high-grade deposits across its Red Lake portfolio as potential sources of mill feed.

Fork and Rowan are central components of that strategy, while Starratt-Olsen and Mount Jamie are further opportunities under evaluation. Integrating additional sources of material over time could increase flexibility in mine planning, mill feed, and the sequencing of future growth, using the infrastructure already in place at Madsen.

Williams links the potential second tranche to the company's satellite deposit plans:

"Our priority remains building consistency and flexibility at Madsen while advancing high-grade satellite deposits that can leverage our existing mine and mill infrastructure. The potential second tranche for Rowan aligns with this strategy, providing an additional source of development capital as we advance the project. We look forward to continuing our relationship with Centalion as a long-term partner."

The Rowan Property is a source of future production growth for the company, and Tranche 2 is the potential development capital for it.

Next Steps

Closing and initial funding of the facility remain subject to satisfactory due diligence, onboarding, and internal authorizations. They also require the negotiation and execution of definitive loan, guarantee, security, and commercial agreements, delivery of security, and the receipt of all necessary approvals. Tranche 2 is subject to further conditions and approvals beyond those.

FAQs (AI-Generated)