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Pure Gold Mining inks agreement for bought-deal offering to raise gross proceeds of C$20.04 million

Published: 22:30 08 Sep 2021 AEST

Canadian dollars and gold
The offering is for 19,048,000 units of Pure Gold Mining at a price of C$1.05 per unit, with each unit comprised of one common share and one-half common share purchase warrant

Pure Gold Mining Inc. said it has entered into an agreement with National Bank Financial Inc., as lead underwriter, on behalf of a syndicate of underwriters, under which they have agreed to purchase, on a bought-deal basis, 19,048,000 units of the company at a price of C$1.05 per unit for gross proceeds of C$20.04 million. 

Each unit is comprised of one common share and one-half common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of C$1.36 for a period of 18 months following the closing of the offering.

The company said the gross proceeds raised from the offering will be used to fund the continued ramp-up of operations at its 100%-owned PureGold Mine Project located in Red Lake, Ontario, underground drilling and development of the high-grade 8 zone, and for general corporate purposes.

READ: Pure Gold Mining sees record monthly gold output in July at its PureGold Mine in Ontario

Pure Gold Mining said it has also granted to the underwriters an over-allotment option to purchase an additional 15% of the base offering, for additional gross proceeds to the company of up to C$3,000,060, to acquire units, common shares and/or warrants - or any combination thereof - at the underwriters’ discretion, and shall be exercisable by the underwriters, in whole or in part, for a period of 30 days from and including the closing date.

The units will be offered in all the provinces of Canada other than Quebec by short form prospectus.

The offering is expected to close on September 28, 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, Canada. Its objective is to develop a highly profitable long-life gold mining company, becoming Canada’s next iconic gold producer. The company intends to expand organically, and develop PureGold’s multi-million-ounce high-grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.

Contact the author at jon.hopkins@proactiveinvestors.com

 

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