West Red Lake Gold Mines Ltd. [WRLG-TSXV] said Tuesday it has strengthened its leadership team by naming Shane Williams as President and CEO, effective June 1, 2023. He succeeds Tom Meredith who becomes Executive Chairman.
Duncan Middlemiss, who recently retired as CEO of Wesdome Gold Mines Ltd. [WDO-TSX], has joined West Red Lake as an independent director.
These strategic appointments are part of ongoing changes at West Red Lake in relation to the recent acquisition of the Madsen gold mine in Red Lake, northwestern Ontario, and to position the company for future success.
In a press release Tuesday, West Red Lake said Williams is an accomplished mining executive and engineer, renowned for his track record of executional excellence in successful mine restarts and builds. “With extensive experience in Canada’s gold mining sector, his expertise is highly relevant to his new position,’’ the company said.
Williams was Chief Operating Officer at Skeena Resources Ltd. [SKE-TSXV, SKE-NYSE, RXFB-FRA] from 2020 to 2023, where he played a pivotal role in advancing the past-producing Eskay Creek gold mine in British Columbia. From 2013 to 2019, he held various leadership positions at Eldorado Gold, including Senior Vice-President, overseeing Canadian and Greek operations.
On June 5, 2023, West Red Lake shares closed at 70 cents and currently trade in a 52-week range of 93 cents and 31 cents.
The company is boosting its leadership team after recentlya binding deal with bankrupt Pure Gold Mining Inc. and Sprott Resource Lending Corp. to acquire the Madsen gold mine and associated land in Red Lake, Ont. Key shareholders include mining financier Frank Giustra
West Red Lake said it will acquire the asset via the acquisition of all the issued and outstanding shares of Pure Gold, a company that recently sought protection under the Companies Creditors Arrangement Act (CCAA). West Red Lake agreed to pay $6.5 million in cash, issue 28.5 million common shares and grant a 1.0% secured net smelter royalty on the Madsen Mine, and make up to US$10 million in deferred consideration payments.
The share issue and the NSR consideration is expected to accrue to Sprott as a fund managed by Sprott, which ranks as a senior secured lender to Pure Gold.
West Red Lake shares began trading in early January, 2023, following the completion of an amalgamation between the company and DLV Resources Ltd. [DLV.H-TSXV].
West Lake Gold Mines is based on Vancouver and focused on gold exploration in the Red Lake Gold District of northwestern Ontario. Its key West Red Lake project is located 15 kilometres west of the Red Lake Mine Complex, which consists of three mines and two mills operated by Evolution Mining Ltd. [EVN-ASX] (on a 69% West Red Lake and 31% Evolution basis).