RED LAKE — A Vancouver-based junior mining company has taken an important step toward the reopening of a Red Lake-area gold mine.
West Red Lake Gold Mines announced it has completed an arrangement with Nebari Natural Resources Credit Fund allowing it to borrow up to US$35 million to help with restarting the Madsen Mine.
Production has been idled since October 2022 when the previous owner, Pure Gold, entered creditor protection and laid off about 240 workers.
West Red Lake Gold Mines acquired the mine and 47 square kilometres of surrounding property the following year.
In a Jan. 2 news release the company said the deal with Nebari includes "highly favorable repayment terms which offers us solid operational flexibility going forward and allows the Company to sustain the momentum as we push to restart the Madsen project...With this Credit Facility in place, West Red Lake Gold is well funded to restart the Madsen Mine in 2025."
Richard Gaze, managing director of Nebari, said the firm "is excited to partner with West Red Lake Gold to support the restart of the Madsen project. We have high confidence in the dedication and professionalism of the West Red Lake Gold team and look forward to the successful restart of commercial gold production at Madsen.”
West Red Lake expects to start up the mill late in the first quarter of this year, with production mining and milling to ramp up starting in the second quarter.
Last month, West Red Lake was one of four mining firms that participated at a conference in Thunder Bay that connected mining companies with suppliers.
