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Pure Gold Mining Inc set to bring in C$32.5 million in bought-deal placing

The offering is expected to close on or around July 16 this year

Mining camp
Pure Gold's Madsen mine is near Newmont Goldcorp Corp’s established Red Lake complex

Pure Gold Mining Inc (CVE:PGM) (LON:PUR) announced Friday it was set to raise more than C$30 million via a bought-deal financing for exploration and development and for general corporate purposes.

A syndicate of underwriters, led by Sprott Capital, have agreed to purchase for their own account or to purchase on a bought-deal private placement basis 59.1 million units at C$0.55 each, for gross proceeds of C$32,505,000.

READ: Pure Gold Mining sees huge exploration upside at Madsen as it begins new exploration program

Each unit consists of one Pure Gold Mining share, and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one company share for three years from the closing for C$0.85.

The underwriters also have the option up to three days before closing, to purchase up to 15% of the number of units initially purchased as part of the offering.

The offering is expected to close on or around July 16 this year and is subject to certain conditions, including approval of the TSX Venture Exchange.

The underwriters will receive a cash commission equal to 6% of gross proceeds of the offering.

Targeting first gold in second half of 2020

Pure Gold, which last month added a London Stock Exchange main market quote to its Toronto listing, is targeting first gold production in the second half of 2020 from its Madsen project near Newmont Goldcorp Corp’s (TSE:NGT) established Red Lake complex in Ontario.

A recent feasibility study outlined an indicated resource of over 1.7 million ounces of gold grading 8.7 grams per ton and an inferred resource of 296,000 ounces of gold at a grade of 7.9 grams per ton.

In a new exploration program, Pure Gold is aiming to grow the mineral resources that form the foundation of a recently completed preliminary economic assessment (PEA) on three new discoveries at Madsen: Wedge, Fork and Russet South.

Contact Giles at [email protected]

Follow him on Twitter@Gile74

Quick facts: Pure Gold Mining

Price: 0.59 CAD

TSX-V:PGM
Market: TSX-V
Market Cap: $208.64 m
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