Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) said it has closed the second and final tranche of its non-brokered private placement for total gross proceeds of C$31.1 million.
The company said between the first and second tranches it had issued a total of 207,240,960 units of the company at a price of C$0.15 per unit.
Each unit consists of one share and one transferrable share purchase warrant that entitles the holder to acquire one common share of Pure Gold for six months from the closing date of the offering at a price of C$0.18.
READ: Pure Gold Mining closes the first tranche of its non-brokered private placement for aggregate gross proceeds of C$27,760,944
The company’s largest shareholder AngloGold Ashanti (ASX:AGG) Limited subscribed for 22,168,000 units, bringing its ownership in the company to 19.2% on a partially diluted basis and 16.5% on a non-diluted basis.
Proceeds from the offering will be used to complete the company’s near-term objectives of ramping up the Pure Gold mine to 800 tonnes per day by the third quarter; reducing operating and sustaining capital costs in the second quarter by at least 30% compared to the first quarter; achieving sustainable positive site-level cash flow by the third quarter; completing critical trade-off studies in support of the updated Mineral Resource, Mineral Reserve, and Life of Mine plan expected to be released by the fourth quarter; and for general corporate purposes.
Pure Gold CEO Mark O’Dea said the financing was intended to give the company the runway it needs to bring stability to its operation and establish a profitable mining business in Canada.
“With a large, high-grade resource base, a strong and improving geological understanding of the deposit, significant opportunity for growth, and a talented new operating team at the hem, we are excited and committed to driving Pure Gold forward,” O’Dea said.
The company also announced that it has closed securities for debt agreements with the issuance of 20,922,914 units at a price of $0.15 per unit to certain creditors to settle outstanding debts totalling $3,138,437.10.
Pure Gold Mining is a Canadian gold mining company located in the heart of Red Lake, Ontario.
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