Pure Gold Mining Inc. (CVE:PGM) (LON:PUR) has announced that Anglogold Ashanti has exercised 5,036,250 share purchase warrants with a strike price of $0.85 each, investing an additional $5.0 million into the company.
“Anglogold Ashanti have once again demonstrated their strong support of PureGold as we complete construction and prepare for first gold pour at our PureGold Mine,” Darin Labrenz, PureGold’s president and CEO said in a statement. “This latest investment increases their shareholding in PureGold to 16%, maintaining their position as our single largest shareholder.”
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“As one of the cornerstone investors in PureGold, Anglogold Ashanti have supported us through all phases of the development of our PureGold Mine, from discovery to near term production.
“We would like to thank Anglogold Ashanti for being a key part of the PureGold story and for sharing our vision for discovery, resource growth and building a long-life growth company in the Red Lake mining district," Labrenz added.
PureGold currently has approximately $74 million in cash, along with US$35 million available in an undrawn credit facility. To date, 95% of major equipment procurement is complete and the company has committed approximately 64% of capital expenditures.
With approximately $120 million available in funding, and $72 million remaining on capital expenditure, the company is in a solid financial position to complete the Pure Gold Mine construction while concurrently advancing our growth strategy through an aggressive exploration program.
The PureGold Mine, located in the heart of Red Lake Ontario, is Canada’s next gold mine with the project on track to deliver near term gold production into a rising Canadian gold price environment, with first gold pour scheduled for late 2020.
The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the company suggest potential opportunities for near-term growth.
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