Disclosure on West Red Lake Project Property
Toronto, Ontario--(Newsfile Corp. - December 23, 2015) - West Red Lake Gold Mines Inc. (CSE: RLG) (FSE: HYK) (OTC: HYLKF) ("West Red Lake Gold" or the "Company") announces that as a result of a review by the Ontario Securities Commission ("OSC"), the Company is issuing this news release to clarify the Company's previous disclosure contained in the Investor Presentation on the Company website (the "IP"). Certain information contained in the IP referred to an historical resource estimate with respect to its West Red Lake Project that was not supported by the current technical report of the Company filed on SEDAR and as a result could have been misleading. Accordingly, the Company is in default of its continuous disclosure obligations (the "Default").
The Company specifically retracts the slide included in the IP which contained an internal estimate based on an extrapolation of historical grades and resource calculations. This was non-compliant and could only have been made compliant if supported by a NI 43-101 compliant Technical Report. In addition, no qualified person had approved the internal estimate contrary to NI 43-101 requirements. Immediately upon notification of the non-compliant information contained in the slide that was part of the IP, the non-compliant slide containing the information was deleted from the Company's website. That particular slide of the IP on the Company website was the only place that contained the non-compliant information.
To further rectify the Default the Company is in the process of preparing an independent NI 43-101 compliant technical report with respect to the Rowan Mine Property which comprises part of the West Red Lake Project. The Company anticipates that the Rowan Mine Property technical report will be completed in or about mid-January, 2016.
West Red Lake Gold will also ensure that future disclosures contain only NI 43-101 compliant information and that such disclosures name the qualified person responsible for any technical information contained in the disclosures.
In connection with the Default, the Company has applied to applicable Canadian securities regulators requesting that a voluntary management cease trade order ("MCTO") be granted. If granted the MCTO restricts all trading in the Company's securities by the CEO and CFO of the Company, as opposed to an issuer cease trade order, which restricts all trading in the Company's securities. The MCTO will be in effect until the technical report on the Rowan Mine Property is filed or until it is revoked or varied.
The Company confirms that it intends to satisfy the provisions of the alternative information guidelines described in section 4.3 and 4.4 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults, for so long as it remains in default.
West Red Lake Gold Mines Inc. is a Toronto-based minerals exploration company focused on gold exploration and development in the prolific Red Lake Gold District of Northwest Ontario, Canada. To find out more about West Red Lake Gold, please visit our website at http://www.westredlakegold.com.
For additional information, please contact: John Kontak, President and acting CFO Phone: 416‑203-9181 Email: jkontak@rlgold.ca
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release. Certain statements contained in this news release constitute "forward looking statements". When used in this document, the words "anticipated", "expect", "estimated", "forecast", "planned", and similar expressions are intended to identify forward looking statements or information. These statements are based on current expectations of management, however, they are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. West Red Lake Gold does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.