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.
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