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Pure Gold Mining expects London listing in second quarter this year

A feasibility study has highlighted a robust 12-year underground mining operation with an initial capital cost of C$95 million
London stock exchange
Pure Gold expects to start trading in the second quarter

Pure Gold Mining Inc (CVE:PGM) expects to start trading on the main market of the London Stock Exchange in the second quarter of this year, ahead of its transition to a producer from a developer.

The company is advancing its Madsen project in the prolific Red Lake district of Northwestern Ontario, Canada.

"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," said Darin Labrenz, the president and CEO of Pure Gold.

READ: Pure Gold Mining closes $5M financing for exploration on its Ontario gold projects

"Our dual listing will increase the company’s international profile, and facilitate improved access to UK and international gold-focused institutional investors that are attracted to an asset that boasts a 1 million ounce reserve at a high-grade of approximately 9 grams per tonne with a short 13 month construction period to production at a capital cost of C$95million."

The Madsen project is centred around a historical Mine, which produced 2.5 million ounces of gold at an average grade of 9.7 g/t (grams per ton) gold between 1938 and 1976 and again from 1997 to 1999.

Robust operation

A feasibility study has highlighted a robust 12-year underground mining operation with an initial capital cost of C$95 million (US$71 million) and strong financials with an after-tax net present value of C$247 million (US$185 million) and an after-tax internal rate of return (IRR) of 36%, using a gold price of US$1,275 per ounce.

Moreover, several discoveries on the project, including the Fork, Russet South and Wedge deposits, could potentially further enhance its economics, with a PEA (preliminary economic assessment) showing these deposits could add C$51 million (US$38 million) to the Madsen Project after-tax NPV at an IRR of 39%.

Pure Gold noted it was not currently planning to raise capital in conjunction with the London admission.

Contact Giles at [email protected]

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