Mr. Darin Labrenz reports
PURE GOLD ANNOUNCES INTENTION TO LIST ON THE MAIN MARKET OF THE LONDON STOCK EXCHANGE
Pure Gold Mining Inc. intends to seek a dual listing of the company's shares on the standard segment of the main market of the London Stock Exchange (LSE).
The Madsen gold project is a precious metals resource project located in the Red Lake district of Northwestern Ontario, Canada, an established mining jurisdiction where more than 29 million ounces of gold have been produced to date from 28 historical mines at an average recovered grade of 15.6 grams per tonne Au
The project is centred around the historical Madsen mine, which produced 2.5 million ounces of gold at an average grade of 9.7 g/t gold between 1938 and 1976 and again from 1997 to 1999.
Pure Gold, currently listed on the TSX Venture Exchange, recently released a technical report, containing the results of a feasibility study on the project which highlighted a robust 12-year underground mining operation with a comparatively low initial capital cost of $95-million (Canadian) ($71-million (U.S.)) and strong financial performance with an after-tax net present value (NPV 5 per cent) of $247-million (Canadian) ($185-million (U.S.)) and an after-tax internal rate of return (IRR) of 36 per cent, using a gold price of $1,275 (U.S.)/oz.
In addition, several related discoveries on the project, including the Fork, Russet South and Wedge deposits, suggest an opportunity to potentially further enhance the project's economics. The technical report also included the results of a preliminary economic assessment (PEA) on these deposits, representing the first conceptual expansion scenario for the future phased growth of the Madsen gold project. The PEA demonstrates the potential of these deposits to add $51-million (Canadian) ($38-million (U.S.)) to the Madsen project after-tax NPV 5 per cent at an IRR of 39 per cent.
Admission to trading on the LSE is expected in Q2 2019. The company is not currently intending to raise capital in conjunction with admission. Velocity Trade Capital Ltd. (VT Capital) and Tamesis Partners LLP are acting as advisers to the company.
Darin Labrenz, president and chief executive officer of Pure Gold, commented:
"We are pleased to be bringing Pure Gold Mining and our high-grade Madsen gold project to the London Stock Exchange ahead of our near-term transition to gold production. Madsen is located in Red Lake, Ont., the heart and home of Canada's high-grade gold mining district that to date has produced 29 million ounces of gold at an average grade of 15.6 grams per tonne gold, making it one of the world's highest grade gold regions. The London market is known for its deep knowledge of the mining sector and as an investment destination for institutional capital from around the world. Our dual listing will
increase the company's international profile, and facilitate improved access to U.K. and international gold-focused institutional investors
that are attracted to an asset that boasts a one-million-ounce reserve at a high grade of approximately nine grams per tonne with a short 13-month construction period to production at a capital cost of $95-million (Canadian). We look forward to the higher profile that comes with a London listing and rapidly advancing our Madsen gold project to become Canada's next gold mine."
Madsen gold project feasibility highlights
Current probable reserves at the Madsen Red Lake gold deposit are one million ounces of gold at an average grade of nine g/t gold contained within 3.5 million tonnes.
Low initial capital requirement of $95-million (Canadian) including an $8-million (Canadian) contingency with access to significant existing infrastructure including underground development and plant infrastructure.
Short 13-month construction period.
Peak annual production of approximately 125,000 ounces with average annual gold production in years three through seven of approximately 102,000 ounces.
Mine life of 12.3 years.
Senior management team with extensive operational experience
The company's board, management and technical team all have extensive experience in gold exploration, development and production across the world. Significantly, they have deep roots in Red Lake -- and a rich and intimate knowledge of the region acquired during their years mining and exploring in the area.
Engagement of Tavistock Communications Ltd.
Pure Gold is also pleased to announce it has appointed Tavistock Communications to provide financial public relations and investor relations services in the United Kingdom. The appointment of Tavistock supports the company's communications strategy of building awareness of the company in the U.K. and to international audiences and communicating with all its stakeholders.
Tavistock does not have any interest, directly or directly, in Pure Gold Mining or its securities nor any right to acquire such an interest. Pursuant to the terms of the company's agreement with Tavistock, Tavistock will be responsible for a variety of financial public relations and investor relations activities, including development of the company's communications strategy, dissemination of corporate information, presentations to and communications with brokers, analysts and investors, and handling shareholder enquiries regarding the company in the U.K.
In consideration of the services to be provided, the monthly fees incurred by Pure Gold will be cash consideration of up to 5,000 pounds sterling.
Qualified persons and National Instrument 43-101 disclosure
Ken Donner, PEng, vice-president, operations for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.
See the National Instrument 43-101 technical report entitled "Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada" with an effective date of Feb. 5, 2019, for complete details, available on the company's website or SEDAR profile.
About Pure Gold Mining Inc.
Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake gold deposit, which outlines a 12-year life-of-mine, current probable reserves of one million ounces at nine g/t Au in 3.5 million tonnes, and 800-tonne-per-day underground mining operation with comparatively low initial capital cost of $95-million.
We seek Safe Harbor.
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