CAPITAL MARKETS

Pure Gold raises C$23M for ramp-up

Pure Gold Mining has raised C$23 million in a bought-deal raising as it ramps up at its new namesake mine in Ontario.

Staff reporter
 Underground at Pure Gold Mining’s namesake mine in Ontario

Underground at Pure Gold Mining’s namesake mine in Ontario

The company had declared commercial production last month at PureGold in the province's Red Lake district.

The placement was priced at $1.05 per unit.

Pure Gold said it intended to use the net proceeds to fund the continued ramp up of operations at the mine, underground drilling and development of the high-grade 8 Zone and for general corporate purposes.

It had raised $17.3 million in May at $1.52 per flow-through share for development expenses at PureGold and amended a facility with Sprott Lending in March "to address the need for additional liquidity as a result of operational issues encountered during the first quarter".

The mine produced 10,075 ounces of gold in first half of 2021 and is expected to produce 27,000-32,000oz in the current half.

It was forecast to produce an average annual 80,000oz over 12 years in a 2019 feasibility study.

Pure Gold shares (TSXV: PGM) have headed lower since a December peak of $3.08, to touch a one-year low of 81c intraday.

They closed down 2.3% to 85c, valuing it about $335 million (US$264 million).

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