TIDMPUR
RNS Number : 4592N
Pure Gold Mining Inc.
20 May 2020
NEWS RELEASE 20-08 May 20, 2020
$15M INVESTMENT backed by Eric Sprott to accelerate resource
growth at PUREGOLD RED Lake mine
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
VANCOUVER, B.C. - May 20, 2020 - Pure Gold Mining Inc.
(TSXV:PGM, LSE:PUR) ("PureGold" or the "Company") is pleased to
announce that it has agreed to issue, on a non-brokered private
placement basis, 9,868,421 charity flow through common shares of
the Company (the "FT Shares") at a price of $1.52 per FT Share (the
"Financing"), for gross proceeds to PureGold of $15,000,000. Mr.
Eric Sprott has agreed to be the back-end buyer of all of the FT
Shares.
"PureGold has all the attributes I look for in a Company -
location, grade, size and growth," said Eric Sprott. "PureGold's
mine in Red Lake has over 7km 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
ultra-high 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 PureGold 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 & CEO of PureGold. "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" (the "Qualifying 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 December 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 (the "Closing Date") 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% of the gross proceeds of the Financing is payable to a group
of financial advisors led by Clarus Securities Inc.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the FT shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the FT
shares in the United States of America. The FT shares have not been
and will not be registered under the United States Securities Act
of 1933, as amended (the "1933 Act") or any state securities laws
and may not be offered or sold within the United States or to, or
for account or benefit of, U.S. Persons (as defined in Regulation S
under the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration requirements is available.
About Pure Gold Mining Inc.
The PureGold Red Lake Mine is Canada's next gold mine. Fully
funded, 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.
Additional information about the Company and its activities may
be found on the Company's website at www.puregoldmining.ca and
under the Company's profile at www.sedar.com .
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements in this press release, other than statements of
historical fact, are "forward-looking information" with respect to
PureGold within the meaning of applicable securities laws,
including, but not limited to statements with respect to the
expected use of proceeds of the Financing, the anticipated closing
date of the Financing, the production potential at the Red Lake
Mine, the results of the Company's growth program and the timing of
the first gold pour at Red Lake. Forward-looking information is
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "planned", "expect",
"project", "predict", "potential", "targeting", "intends",
"believe", "potential", and similar expressions, or describes a
"goal", or variation of such words and phrases or state that
certain actions, events or results "may", "should", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, the closing of the Financing, the satisfaction of the
conditions to closing the Financing, assumptions about future
prices of gold and other metal prices, currency exchange rates and
interest rates, favourable operating conditions, political
stability, obtaining governmental approvals and financing on time,
obtaining renewals for existing licences and permits and obtaining
required licences and permits, labour stability, stability in
market conditions, availability of equipment, accuracy of any
mineral resources, successful resolution of disputes and
anticipated costs and expenditures. Many assumptions are based on
factors and events that are not within the control of PureGold and
there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, the closing date of the
Financing and the anticipated use of proceeds of the and the
qualification of the use of proceeds as Canadian Exploration
Expenditures, risks relating to the ability of the Company to
obtain required regulatory approvals, complete definitive
documentation, fulfill all conditions precedent and complete the
Financing on the terms announced; risks related to the
interpretation of results at the Madsen Gold Project; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration activities
generally; delays in permitting; possible claims against the
Company; labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of exploration as well as those factors discussed in the
Annual Information Form of the Company dated March 26, 2020 in the
section entitled "Risk Factors", under PureGold's SEDAR profile at
www.sedar.com .
Although PureGold has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. PureGold disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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