Pure Gold Mining Inc. (CVE:PGM) has upsized its previously disclosed bought deal financing to C$15 million from C$10 million due to strong investor demand.
The gold miner said it has entered into an agreement with Clarus Securities Inc., as lead underwriter, on behalf of a syndicate, for it to purchase on a bought deal basis, or alternatively to arrange for the purchase of, as agent for substituted purchasers, of 9,868,400 flow-through (FT) common shares priced at $1.52 each for aggregate gross proceeds of C$10,001,600.
READ: Pure Gold Mining says high-grade underground drill results at Red Lake augur well for near-term mine plan
The gross proceeds raised from the offering will be used by the company to finance “Canadian development expenditures”, as defined in the Income Tax Act (Canada), on its property in Ontario.
The company said it has also granted the underwriters an over-allotment option to purchase an additional 1,480,300 FT shares on the same terms as the offering for a period ending 30 days following the closing of the offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be C$17,250,024.
The securities will be offered in the provinces of British Columbia, Alberta, and Ontario by short form prospectus.
The offering is expected to close on May 5, 2021, subject to customary conditions and all regulatory approvals including the approval of the TSX Venture Exchange.
PureGold is a growth company, located in the very heart of Red Lake which is developing into Canada’s next iconic gold producer. The company’s multi-million-ounce, high-grade gold asset is being developed incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
Contact the author at jon.hopkins@proactiveinvestors.com