West Red Lake and RLG complete business combination

Pursuant to the transaction, the RLG shareholders will receive 0.1215 of a West Red Lake common share for each RLG common share held, resulting in an aggregate of 35 451 916 West Red Lake common shares being issued to the RLG shareholders. Holders of convertible securities of RLG will receive convertible securities of West Red Lake as adjusted by the exchange ratio, resulting in the issuance of replacement options to acquire 978 075 West Red Lake common shares and replacement warrants to acquire 538 603 West Red Lake common shares. In addition, 1 700 000 common shares of West Red Lake were issued to certain persons as finders shares in respect of the transaction.

In connection with the closing of the transaction, the existing directors of West Red Lake have resigned, and the Board of Directors has been reconstituted to consist of Tom Meredith, John Heslop, Ryan Weymark, Susan Neale and Rob van Egmond. Mr. Meredith has been appointed as Chief Executive Officer, and Jasvir Kaloti will continue as Chief Financial Officer and Corporate Secretary.

Following the transaction, West Red Lake will continue the business of RLG, being the exploration and development of the West Red Lake project located in the Red Lake Gold District of Northwestern Ontario, Canada.

In connection with the transaction, West Red Lake has changed its name from “DLV Resources Ltd.” to “West Red Lake Gold Mines Ltd.” It is anticipated that West Red Lake will graduate to Tier 2 of the TSX Venture Exchange as a mining issuer, and trading in its common shares will resume under the symbol “WRLG” effective 5 January 2023. It is expected that the common shares of RLG will be de-listed from the Canadian Securities Exchange on 5 January 2023. All common shares issued pursuant to the transaction are free of any hold period.

In addition, West Red Lake has granted an aggregate of 3 775 000 stock options to directors, officers, consultants, and employees of West Red Lake and to certain charitable organisations. The options are exercisable at a price of US$0.50 per share for a period of 10 years from the date of grant.

Read the article online at: https://www.globalminingreview.com/mining/03012023/west-red-lake-and-rlg-complete-business-combination/