Pure Gold Mining Inc (CVE:PGM) (LON:PUR), the Red Lake mine developer, has closed a non-brokered private placing, raising C$15 million gross to fund an "aggressive" exploration drilling program at the project.
In a statement, the group said it had closed the previously announced placing of flow-through common shares at C$1.52 per share and that resource investor Eric Sprott was the back-end buyer of all the flow through shares. He has now increased his stake in the company to 12%.
READ: Pure Gold Mining launches 30,000m drill program at Red lake project in bid to grow resources, make new high-grade discoveries
"This new capital gives us the financial flexibility to launch an aggressive exploration drilling campaign designed to accelerate our goal of resource growth and expansion," said Pure Gold CEO Darin Labrenz in a statement.
"While we remain completely focused on our fully-funded mine construction and ramp-up, we strongly believe our mine plan is both scalable, and has the potential to expand. This investment allows us to begin building out our future growth today, concurrent with mine construction activities which remain on-track for first gold production in Q4 2020."
Earlier in June, the firm said that over 30,000 metres (m) of diamond drilling, both underground and at surface, was planned at the site in Ontario and the work was expected to carry on into 2021.
Meanwhile, the Red Lake mine is fully funded and on track to deliver gold production into a rising Canadian gold price, with first output scheduled for late 2020.
"We would like to thank Eric Sprott for his continued support of the company and of our vision of becoming a high-margin, long-life producer in the Red Lake mining district," added Labrenz in the statement.
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