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.
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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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