Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) said it has entered into a share purchase agreement with West Red Lake Gold Mines (WRLG) and a fund managed by Sprott Resource Lending (TSX:SIL) under which WRLG will acquire the company.
As previously announced by Pure Gold, WRLG has agreed to pay C$6.5 million in cash, issue 28.46 million common shares, and grant a 1% secured Net Smelter Royalty (NSR) on the Madsen Gold Project as consideration for the acquisition, in addition to US$10 million in deferred consideration payments.
The acquisition is subject to regulatory approvals and the receipt of an “Approval and Reverse Vesting Order” from the Supreme Court of British Columbia in the company’s ongoing proceedings pursuant to the Companies’ Creditors Arrangement Act.
A court hearing seeking approval for the acquisition is set for May 29, 2023.
Pure Gold is a Canadian gold mining company with a mine located in Red Lake, Ontario, Canada.
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