10:06:35 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Pure Gold Mining Inc
Symbol PGM
Shares Issued 359,233,359
Close 2020-05-19 C$ 1.19
Market Cap C$ 427,487,697
Recent Sedar Documents

Pure Gold arranges $15-million private placement

2020-05-20 07:47 ET - News Release

Mr. Darin Labrenz reports

$15M INVESTMENT BACKED BY ERIC SPROTT TO ACCELERATE RESOURCE GROWTH AT PUREGOLD RED LAKE MINE

Pure Gold Mining Inc. has agreed to issue, on a non-brokered private placement basis, 9,868,421 charity flow-through common shares of the company at a price of $1.52 per FT share for gross proceeds to Pure Gold of $15-million. Eric Sprott has agreed to be the back-end buyer of all of the FT shares.

"Pure Gold has all the attributes I look for in a company -- location, grade, size and growth," said Mr. Sprott. "Pure Gold's mine in Red Lake has over seven km of strike with known high-grade shoots that have only been defined down to 1,200 metres compared to 2,500 metres in the neighbouring Red Lake mine complex. The ultrahigh-grade hits in the 8 zone remind me a lot of the HG zone that built Goldcorp, as well as SMC at Macassa and the Swan zone at Fosterville. These are the types of discoveries that have the potential to be company makers and tend to lead to a much higher production profile than originally given credit."

"Mr. Sprott is a cornerstone investor of Pure Gold and continues to be a strong supporter of our vision to becoming a high-margin, long-life gold producer uniquely positioned in the Red Lake camp," said Darin Labrenz, president and chief executive officer of Pure Gold. "We are fully funded and on track to pour our first gold in Q4 2020 into a record high gold price environment for Canadian producers. This new investment in exploration enables us to concurrently ramp up our focus on aggressive resource growth without impacting our capital budget for final mine completion and first gold pour. We believe this combination of near-term cash flow through production and organic resource growth will create significant value for our shareholders in the near term."

The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT shares with an effective date no later than Dec. 31, 2020, in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares, and, if the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each initial purchaser of FT shares for any additional taxes payable by such subscriber as a result of the company's failure to renounce the qualifying expenditures as agreed.

It is expected that the closing of the financing will occur on or about June 17, 2020, and is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. The FT shares to be issued under the financing will have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.

In consideration for their services, a finders' fee equal to 6.0 per cent of the gross proceeds of the financing is payable to a group of financial advisers led by Clarus Securities Inc.

About Pure Gold Mining Inc.

The Pure Gold Red Lake mine is Canada's next gold mine. Fully financed, the project is on track to deliver near-term gold production into a rising Canadian gold price environment, with first production scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the company suggest potential opportunities for near-term growth.

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