Pure Gold Again Postpones Closing Of $30 Million Financing
Pure Gold Mining (TSXV: PGM) is evidently having some level of difficulty closing its previously announced $30.0 million private placement. The firm this morning had a brief update on the matter, indicating it will be extending the closing of the financing to May 25.
The new date for the closing of the financing represents an extension of just under two weeks, with the round initially expected to close on May 13. Further, the company is expecting the financing to close in one or more tranches, however Pure Gold has indicated that it has received allocations of $30.0 million under the offering.
Originally announced on May 6, the financing was for a minimum of $30 million, and was expected to potentially bring in upwards of $40 million, based on demand. Units under the offering are priced at $0.15 per each, with each unit containing one common share and one common share purchase warrant. Warrants are valid for a period of six months at a price of $0.18 per each.
A total of 200.0 million units are expected to be sold under the program, of which 10.0 to 13.3 million were previously indicated to be taken down by insiders of the company. AngloGold Ashanti meanwhile was also expected to maintain its pro rata ownership stake in the company via the financing, with the firm currently able to take up to a 19.9% stake in the firm.
The financing was initially expected to be closed prior to the firms release of its first quarter financial results, however that timeline has since slipped. On May 17, the firm reported declining production of 6,653 ounces of gold, while they sold a total of 7,876 ounces during the quarter for gross revenues of $18.4 million. In a testament to just how difficult of an operation position the company is in, cost of sales meanwhile hit $41.8 million for the same period, with the company refusing to provide an all-in cost of production for the results.
At the time of the results being released, the firm stated that the closing of the financing would notably be the following day, on May 18 – which has also now come and gone.
Pure Gold Mining last traded at $0.18 on the TSX Venture.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
