West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) raised CA$40.65 million (CA$$40.65M) in total gross proceeds from a now closed financing in which it issued 41.29 million (41.29M) shares, reported Matthew O'Keefe, analyst at Cantor Fitzgerald, in a Sept. 24 research note. The financial services firm lowered its target price on the gold company by 18% to reflect a potentially slower ramp-up and unanticipated share dilution.
"West Red Lake Gold expects to declare commercial production by Q1/26," O'Keefe wrote.
75% Return Implied
Cantor Fitzgerald's new target price on West Red Lake Gold is CA$1.80 per share, down from CA$2.20 previously, noted O'Keefe. In comparison, at the time of the analyst's report, the junior miner was trading at about CA$1.03 per share. From this price, the return to the new target is 75%.
West Red Lake Gold is a Buy.
The company has 389.3M shares outstanding, a market cap of CA$401M and a 52-week range of CA$0.52–1.18 per share.
Details of Equity Raise
Because West Red Lake Gold ended Q2/25 with only CA$1.7M in working capital and is ramping up production at its flagship Madsen project in northwest Ontario's Red Lake Gold District, the company unsurprisingly executed a top-up financing, wrote O'Keefe.
In the two-part financing, West Red Lake Gold issued 37,526,800 common shares at CA$0.95 apiece for gross proceeds of CA$35,650,460. West Red Lake Gold will use the net proceeds from this common share issuance to continue advancing Madsen through to commercial production.
The company also issued 3,760,000 charity flowthrough shares at CA$1.33 apiece for gross proceeds of CA$5,000,800. Proceeds from the flowthrough issue will fund advancement (drilling and a prefeasibility study) of Rowan, a "key growth project that will provide the company with a near-term path to producing over 100,000 ounces of gold at Red Lake," described O'Keefe.
Financing Pros and Cons
O'Keefe presented the financing's upside and downside. Positively, the CA$35.7M straight equity component of the financing will allow the company to continue the ramp-up and its capital projects, O'Keefe wrote. To declare commercial production, West Red Lake Gold wants to show steady throughput and mill performance for at least three months and finish certain capital projects now underway.
"These items are expected to be completed in H2/25, which should allow West Red Lake Gold to declare commercial production in Q1/26," O'Keefe wrote.
Negatively, according to O'Keefe, the financing is sizeable, suggesting higher-than expected costs, and is dilutive to Cantor's valuation of WRLG.
The analyst wrote that the CA$5M flowthrough issue is more palatable as it is modest in size, was done at a premium and will allow the gold company to proceed with Rowan.
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Important Disclosures:
- West Red Lake Gold Mines Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- 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 Mines Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Cantor Fitzgerald, West Red Lake Gold Mines, September 24, 2025
The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Canada Corporation, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co. Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.
Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Disclosures as of September 24, 2025 Cantor has not provided investment banking services or received investment banking related compensation from West Red Lake Gold Mines Ltd. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of West Red Lake Gold Mines Ltd. The analyst responsible for this report has visited the material operations of West Red Lake Gold Mines Ltd. No payment or reimbursement was received for related travel costs. Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein. Definitions of recommendations BUY: The stock is attractively priced relative to the company’s fundamentals and we expect it to appreciate significantly from the current price over the next 6 to 12 months. BUY (Speculative): The stock is attractively priced relative to the company’s fundamentals, however investment in the security carries a higher degree of risk. HOLD: The stock is fairly valued, lacks a near term catalyst, or its execution risk is such that we expect it to trade within a narrow range of the current price in the next 6 to 12 months. The longer term fundamental value of the company may be materially higher, but certain milestones/catalysts have yet to be fully realized. SELL: The stock is overpriced relative to the company’s fundamentals, and we expect it to decline from the current price over the next 6 to 12 months. TENDER: We believe the offer price by the acquirer is fair and thus recommend investors tender their shares to the offer. UNDER REVIEW: We are temporarily placing our recommendation under review until further information is disclosed. Member-Canadian Investor Protection Fund. Customers' accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request.
