Pure Gold Mining Inc told shareholders it has closed the non-brokered private placement that was announced on October 5, 2021.
As part of the offering, Pure Gold issued a total of 3,307,619 units of the company to AngloGold Ashanti (ASX:AGG) Limited at a price of C$1.05 per unit for aggregate gross proceeds of C$3,473,000.
Once the offering is finalized, AngloGold will hold a 14.96% ownership stake in Pure Gold on a non-diluted basis.
READ: Pure Gold Mining agrees to issue 3,307,619 units on a non-brokered basis to AngloGold Ashanti for gross proceeds of approximately C$3.473M
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant is transferable and entitles the holder to acquire one common share for C$1.36 until April 15, 2023.
With its 14.96% stake, AngloGold is considered a “related party” of Pure Gold, and as such, the offering constitutes a “related party transaction”.
The precious metals company has earmarked the proceeds to fund the continued ramp-up of operations at its wholly-owned PureGold Mine Project located in Red Lake, Ontario. The work will include; underground drilling, the development of the high-grade 8 zone, and for general corporate purposes. The securities issued under the offering have a hold period of four months and one day from closing, expiring on February 16, 2022.
Contact the writer at georgia@proactiveinvestors.com