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Pure Gold closes $5.17-million private placement

2019-03-29 11:02 ET - News Release

Mr. Darin Labrenz reports

PURE GOLD CLOSES PREVIOUSLY ANNOUNCED BOUGHT DEAL PRIVATE PLACEMENT

Pure Gold Mining Inc. has closed the bought deal private placement announced on March 14, 2019.

Pursuant to the offering, the company issued a total of 7,723,975 common shares of the company issued on a flow-through basis, at a price of 67 cents per flow-through share, for gross proceeds of $5,175,063. This included the exercise in full of the underwriters' option of 1,007,475 FT shares at a price of 67 cents per FT share.

The offering was completed through a syndicate of underwriters led by Sprott Capital Partners LP and included Velocity Trade Capital Ltd. and Macquarie Capital Markets Canada Ltd. In consideration for their services, the underwriters received an aggregate cash commission equal to 6 per cent of the gross proceeds of the offering.

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, which will be renounced to the initial purchasers of the FT shares with an effective date no later than Dec. 31, 2019, 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.

The FT shares issued under the offering have a hold period of four-month-and-one-day from closing, expiring on July 30, 2019.

About Pure Gold Mining Inc.

Pure Gold is working to unlock the next major discovery at the Madsen gold project in Red Lake, Ont., and become Canada's next iconic gold company.

We seek Safe Harbor.

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