Pure Gold Mining Sees AngloGold Increase Stake To 19.9%, Raises $25 Million

Pure Gold Mining (TSXV: PGM) this morning announced a series of financings that will add further cash to its balance sheet. The firm has also seen one of its largest shareholders, AngloGold Ashanti, significantly increase its stake in the company.

The first financing to be conducted, a bought deal lead National Bank Financial, will see the company raise $9.0 million at a price of $0.53 per share. A total of 17.0 million shares are to be issued under the offering, with an over-allotment option currently in place that could see the sale of an additional 9.4 million shares for further proceeds of $5.0 million.

Concurrently, the firm is conducted a private placement of 30.2 million common shares with AngloGold, for gross proceeds of $16.0 million. The investment will see the company increase its stake from 14.9% to 19.9% on a partially diluted basis, with the company also retaining the ability to maintain that stake should certain options be exercised.

Proceeds from the transactions are to be used to fund the final ramp up of operations to get the firm to design capacity at its Red Lake Mine. The offerings are currently slated to close February 15.

Pure Gold Mining last traded at $0.63 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Emerita Resources Formally Appeals Administrative Ruling On Aznalcóllar Related To 2017 Complaint 

Related News

Pure Gold’s Underground Step-Out Drilling Discovers 12.8 G/T Gold Over 10 Metres

Pure Gold Mining (TSXV: PGM) this morning announced that it has intersected further high grade...

Tuesday, July 28, 2020, 08:37:09 AM

Pure Gold Mining Begins Strategic Review Process, Including Potential Sale Of Mine

Pure Gold Mining (TSXV: PGM) is officially undergoing a strategic review, which will potentially see...

Tuesday, July 12, 2022, 11:04:44 AM

Pure Gold: Forest Fire Breaks Out Nearby Madsen Mine

It appears that a forest fire has broken out nearby to Pure Gold Mining’s (TSXV:...

Monday, August 10, 2020, 10:28:00 PM

PureGold’s “Operational Turnaround” Started With Layoffs, Biweekly Mill Schedule, 4-Month CEO

For Pure Gold Mining Inc. (TSXV: PGM), the year 2022 began with a promise of...

Friday, April 22, 2022, 11:23:00 AM

Pure Gold Becomes Subject Of Class Action Lawsuit Filed In BC After Revealing Cash Problems

Things are evidently getting worse for Pure Gold Mining (TSXV: PGM). After announcing last week...

Friday, April 8, 2022, 09:13:21 AM