Fully Funded to Production at Canada’s Next Gold Mine while Aggressively Advancing Exploration
VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR) (“PureGold” or the “Company”) is pleased to announce that the Company has raised $12.3 million from the exercise of 14,465,000 share purchase warrants with a strike price of $0.85 (the “Warrants”), representing 100% of the Warrants that otherwise would have expired May 24, 2020.
On closing of the recently announced private placement, PureGold will have approximately $101 million in cash, along with $US35M available in an undrawn credit facility.
With approximately $150 million available in funding, and $86 million remaining on capital expenditure to complete our mine construction, the Company is in a uniquely solid financial position to be able to concurrently fund an aggressive exploration program. Commencing June 3rd this program will include underground drilling focused on the expansion of mineral resources in areas targeted for early production, as well as expansion of new high-grade discoveries at surface and at depth across our 47km2 property. This drilling will enable us to accelerate our resource growth plan, without impacting our capital budget for final mine completion and first gold pour.
“The past week has bolstered our balance sheet and added depth to our shareholder base. I’d like to thank our long-term shareholders, including AngloGold Ashanti for maintaining their shareholdings in Pure Gold (at ~15%) through the exercise of Warrants. And I’d also like to thank Eric Sprott for his increased support (~12%) and for recognizing not only the value of our near term gold production, but also the explosive value creation that comes from ongoing discoveries and resource growth in one of the highest grade mines in the world.” says Darin Labrenz, President and CEO. “Our mine has all the attributes of a company maker – location, grade, size, and transformative growth potential. The opportunity for value creation is tremendous, with near term cash flow delivered in a rising gold market, and a strong organic growth platform to build out our vision of a long-life growth company. Having only scratched the surface across our 7+ kilometre long high grade gold system, we are taking measures to expedite our growth plan. New funds will be earmarked for aggressive exploration work that will fast track discovery and resource development in a phased approach to realizing the true potential of our scalable PureGold mine.”
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.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adam Buchanan, Manager, Investor Relations
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 those that address proposed timing of development plans for the PureGold Red Lake Mine (RL Mine Project), timing of expected production, timing of exploration activities, expected capital costs, expected development schedule, potential for advancing the timing for higher grade ore, potential for additional resources and expansion of known deposits and the focus of the Company in the coming months . 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, 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, risks related to the interpretation of results at the RL Mine 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; the timing of future economic studies; 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.