PureGold Mining To Raise $3.45 Million In Non-Brokered Financing With AngloGold
Pure Gold Mining Inc. (TSXV: PGM) announced on Tuesday that it has launched a private placement on a non-brokered basis with AngloGold Ashanti Limited. The offering is reported to be for gross proceeds of $3.45 million.
The financing will see the issuance of 3,307,619 company units at $1.05 per unit. Each unit entitles the bearer to a common share and half of a purchase warrant. Each whole warrant is exercisable to purchase a common share at $1.36 per share and is valid for 18 months from the closing date.
Anglogold is considered a “related party” to the company and currently holds 14.3% equity. The transaction is expected to close on October 15, 2021, subject to customary closing conditions and regulatory approvals.
The gold producer said it intends to use the proceeds to fund the operations at its 100%-owned PureGold mine project in Red Lake, Ontario; the underground drilling and development of the high-grade 8 zone; and for general corporate purposes.
Pure Gold Mining last traded at $0.87 on the TSX Venture.
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