Coming in hot after achieving a new production milestone, Pure Gold Mining (TSXV: PGM) this morning announced a bought deal financing. The company is looking to raise gross proceeds of $20.0 million via a financing lead by National Bank.
Under the terms of the financing, the company is to sell a total of 19.0 million units of the firm at a price of $1.05 per each. Each unit contains one common share and one half of a common share purchase warrant. Warrants are valid for a period of 18 months from the date of issuance, and contain an exercise price of $1.36 per share.
An over-allotment option has also been granted, enabling a further $3.0 million in additional units to be sold should the demand be present.
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Proceeds from the offering are to fund the ramp up of operations at the firms flagship gold mine in Red Lake, Ontario, as well as to support further drilling and development and for general corporate purposes.
The financing is expected to close by September 28.
Pure Gold Mining last traded at $1.15 on the TSX Venture.
Information for this briefing was found via Pure Gold Mining and Sedar. 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.
