Pure Gold Mining Inc (TSX.V:PGM) (LSE:PUR) (OTCMKTS:LRTNF) released its second quarter earnings Wednesday and outlined a timeline of activity for the forthcoming months as it works towards building its exciting Madsen Red Lake gold mine in Ontario, which is now fully funded.
The junior resource group told investors that despite "challenging market conditions", the company had secured access to around C$167.5 million in funding in the last five months.
READ: Pure Gold Mining set to start building Madsen Red Lake gold mine after securing US$90M financing package
That includes a US$65 million credit facility and a US$25 million gold metal stream with Sprott Resource Lending and a $47.5 million equity raise.
Pure Gold said it believed it had "sufficient funds available to fund construction and development" of Madsen, which spans over 4,600 hectares and housed two former mines, which generated 2.6 million ounces of gold. First gold is earmarked for late 2020.
A feasibility study completed in February this year showed an 800 tonne-per-day underground mine with a life of 12 years, and put the cost of construction and development at C$95 million, including contingency and start-up and working capital.
In August this year, Pure Gold started the process to hire engineers to commence detailed engineering for the construction of surface works and mill upgrades and underground ramp and stope development.
The company said in a statement that detailed engineering is expected to be completed by October this year. This will lead to a project schedule with finalized costing and then the firm will begin construction.
Other work over coming months includes continuing environmental studies and documentation to support the updating of existing permits and filing for additional permits.
Also planned is the construction and upgrade of surface facilities, including mill upgrades, updates to the tailings facility and other surface works, in addition to the start of the underground ramp and stope development.
The three months to June 30 also saw exploration success for the firm, which continued to expand the Wedge deposit at the project and several bonanza grade gold intercepts were hit.
In keeping with a firm at this stage of development, it posted a net loss of around C$4 million in the quarter, versus a loss of C$7.7 million in the same period a year earlier.
Contact the author at [email protected]