The notes will bear a coupon rate of 12% per annum, calculated and payable quarterly in arrears, and will mature on December 31, 2029. Starting 2026, the company will cause gold to be placed in escrow on a quarterly basis into a gold trust account.
The total principal amount of notes outstanding will be reduced by the company on a quarterly basis, commencing on March 31, 2026, and with the final payment on December 31, 2029, in accordance with a pre-determined payment schedule.
The notes will amortize based on a guaranteed floor price of $1,800/oz. Any excess proceeds by which the gold price exceeds the floor price will be paid to investors as a premium.
Canadian businessman and renowned mining financier Frank Giustra, who holds 11.07% of West Red Lake’s outstanding common shares, intends to purchase 3,700 of the units, representing $3.7 million in gross proceeds.
“The offering marks another key step in the financing process…
