West Red Lake Gold Signs US$95 Million Credit Facility and Gold Offtake Agreement with Centalion

West Red Lake Gold Mines Ltd. (WRLG) announced on November 2, 2026, that it has entered into a binding term sheet with Gunvor USA LLC, a subsidiary of Centalion Group, for a proposed credit facility of up to US$95 million. The facility is structured into Tranche 1, which provides up to US$65 million, and Tranche 2, which offers up to US$30 million and is subject to additional conditions and approvals.

The proposed terms include a five-year maturity and a nine-month principal repayment holiday on Tranche 1, followed by monthly amortization. Prepayment is permitted without penalty subject to notice and applicable fees. Interest is set at one-month SOFR plus 5.50%, subject to final diligence and the security package. Security for the facility includes a parent guarantee and a first-lien, priority-ranking security interest over the Madsen Mine and Rowan assets. Additionally, Gunvor would purchase 100% of gold doré produced from the operation under a commercial offtake agreement.

Proceeds from the facility are intended to refinance the existing Nebari secured debt facility, provide working capital for Madsen development, and potentially fund future Rowan development. The company clarified that the release constitutes a binding term sheet rather than a completed financing. Closing remains subject to due diligence, onboarding, internal authorizations, definitive financing and commercial agreements, security delivery, and required approvals. The release contains no new production, cost, reserve, or mine-plan data.

West Red Lake Gold Mines Ltd. (WRLG) has announced a financing facility valued at up to US$95 million, which translates to approximately C$131 million at an exchange rate of 1.38 CAD/USD. This amount represents roughly 61% of the company’s C$215 million market capitalization, with Tranche 1 alone accounting for about 42% of that valuation. As of Q2 2026, total debt stood at C$93.2 million, or approximately US$67 million. Consequently, Tranche 1 of US$65 million serves to refinance existing debt, while Tranche 2 provides incremental liquidity and potential capital for the Rowan development.

The structure of the deal includes a five-year maturity and a nine-month principal holiday, alongside a stated refinancing of the Nebari facility on improved terms, which aims to reduce near-term refinancing and amortization pressure. However, the cost of capital is significant. Based on a rate of roughly 4% SOFR plus 5.50%, the all-in interest rate is near 9.5%. On the US$65 million tranche, this equates to approximately US$6.2 million in annual interest, or C$8.5 million; on the full US$95 million, the interest cost rises to about US$9.0 million, or C$12.4 million, before fees. This creates a substantial burden relative to the C$8.2 million in interest expense recorded in H1 2026.

Commercially, the agreement mandates that 100% of gold doré be sold to Gunvor. The release does not disclose specific pricing mechanics, discounts, or other commercial terms, limiting the ability to fully assess the economic impact. Additionally, the first lien now encumbers both the Madsen and Rowan assets, covering the main growth asset as well as the producing mine. The financing is not yet completed; credit improvement will be material only if definitive agreements are signed and funded, with execution and disclosure risks remaining.

West Red Lake Gold Mines Ltd., listed on the TSXV under WRLG and OTCQX under WRLGF, is a Canadian gold producer and developer. Its flagship asset is the 100%-owned Madsen Mine in the Red Lake district of Ontario, which achieved commercial production on January 1, 2026. The company controls a 47 km² land package in Red Lake and a 31 km² Rowan property containing the past-producing Rowan, Mount Jamie, and Red Summit mines.

The company’s strategy employs a hub-and-spoke model, with the Madsen mill and infrastructure serving as the central processing hub. Potential satellite feed includes deposits such as Fork, Rowan, Starratt-Olsen, and Mount Jamie. Madsen serves as the operating base, while Rowan is the main near-term resource growth asset, though it currently holds no reserves. Fork is a small, higher-grade satellite under development, and the 904 Complex is a high-grade underground growth area targeted for the first half of 2027.

The company owns a fully permitted Madsen mill with a current throughput of approximately 800 tonnes per day (tpd) and a nameplate capacity of 1,100 tpd. Mill processing has supported up to 1,000 tpd after the secondary crusher.