Pure Gold Mining raises further funds for Red Lake Mine
Doing exactly what it says on the tin, the gold mining company is planning to commence a programme of underground drilling starting on 3 June for the expansion of mineral resources at its PureGold Red Lake Mine, which is scheduled for first production in late 2020.
“The past week has bolstered our balance sheet and added depth to our shareholder base. I’d like to thank our long-term shareholders, including AngloGold Ashanti for maintaining their shareholdings in Pure Gold (at ~15%) through the exercise of Warrants. And I’d also like to thank Eric Sprott for his increased support (~12%) and for recognizing not only the value of our near term gold production, but also the explosive value creation that comes from ongoing discoveries and resource growth in one of the highest grade mines in the world,” said Darin Labrenz, President and CEO in a press release.
The company raised $12.3mn from the exercise of 14,465,000 share purchase warrants, leaving it with $101mn in cash, along with $US35mn available in an undrawn credit facility.
“Our mine has all the attributes of a company maker – location, grade, size, and transformative growth potential. The opportunity for value creation is tremendous, with near term cash flow delivered in a rising gold market, and a strong organic growth platform to build out our vision of a long-life growth company. Having only scratched the surface across our 7+ kilometre long high grade gold system, we are taking measures to expedite our growth plan. New funds will be earmarked for aggressive exploration work that will fast track discovery and resource development in a phased approach to realizing the true potential of our scalable PureGold mine.”