Pure Gold Mining Inc said it has now closed the brokered bought deal private placement and concurrent non-brokered AngloGold share subscription announced on January 27, 2022.
The net proceeds received from the transactions will be used to complete the ramp-up of operations to design capacity at the company's 100%-owned PureGold Mine located in Red Lake, Ontario and for general corporate purposes.
Under the brokered offering, the company issued a total of 26,423,000 common shares at a price of C$0.53 each for aggregate gross proceeds of C$14,004,190.
Under the AngloGold subscription, the company issued a total of 32,525,000 common shares to AngloGold Ashanti (ASX:AGG) International Exploration Holdings Limited at a price of C$0.53 each for aggregate gross proceeds of C$17,238,250.
READ: Pure Gold Mining inks deals for brokered private placement and concurrent offering with AngloGold Ashanti
The subscription brings AngloGold's ownership percentage in the company to 19.6% on a non-diluted basis and 19.9% on a partially diluted basis upon completion of the transactions.
In connection with the subscription, PureGold and AngloGold entered into a shareholder rights agreement providing AngloGold with certain rights, including standard anti-dilution and equity participation rights as well as certain rights to PureGold's technical and scientific data.
The brokered offering was completed through a syndicate of underwriters including National Bank Financial Inc., as lead underwriter, Clarus Securities Inc., Laurentian Bank Securities Inc., PI Financial Corp. and Stifel Nicolaus Canada Inc.
In consideration for their services, the underwriters received an aggregate cash commission equal to 5.0% of the gross proceeds of the brokered offering (other than from the issue and sale of the common shares to certain purchasers on a president's list, for which no cash commission was paid).
The securities issued under the transactions have a hold period of four months and one day from closing, expiring on June 16, 2022.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any US state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws.
PureGold is a Canadian gold mining company, located in the very heart of Red Lake, Ontario, Canada. With its 100%-owned, fully constructed operating PureGold Mine, a multi-million-ounce gold endowment, and significant exploration upside, the company's value-maximizing strategy is to pursue operational excellence today, while investing in systematic exploration and phased expansions to fuel discovery and growth for the future.
Contact the author at jon.hopkins@proactiveinvestors.com