VANCOUVER, British Columbia, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR) (“PureGold” or the “Company”) is pleased to announce that Anglogold Ashanti has exercised 5,036,250 share purchase warrants with a strike price of $0.85 (the “Warrants”), investing an additional $5.0 million into the Company.
“Anglogold Ashanti have once again demonstrated their strong support of PureGold as we complete construction and prepare for first gold pour at our PureGold Mine,” says Darin Labrenz, President and CEO. “This latest investment increases their shareholding in PureGold to 16%, maintaining their position as our single largest shareholder. As one of the cornerstone investors in PureGold, Anglogold Ashanti have supported us through all phases of the development of our PureGold Mine, from discovery to near term production. We would like to thank Anglogold Ashanti for being a key part of the PureGold story and for sharing our vision for discovery, resource growth and building a long-life growth company in the Red Lake mining district.”
The Company currently has approximately $74 million in cash, along with $US35M available in an undrawn credit facility. To date, 95% of major equipment procurement is complete and the Company has committed approximately 64% of capital expenditures. With approximately $120 million available in funding, and $72 million remaining on capital expenditure, the Company is in a solid financial position to complete the Pure Gold Mine construction while concurrently advancing our growth strategy through an aggressive exploration program.
About Pure Gold Mining Inc.
The PureGold Mine, located in the heart of Red Lake Ontario, is Canada’s next gold mine. Fully funded, the project is on track to deliver near term gold production into a rising Canadian gold price environment, with first gold pour scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the Company suggest potential opportunities for near-term growth.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adrian O’Brien, Director of Marketing & Communications
Office: 604-646-8000 x223
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the PureGold Red Lake Mine (RL Mine Project), timing of expected production, timing of exploration activities, expected capital costs, expected development schedule, potential for advancing the timing for higher grade ore, potential for additional resources and expansion of known deposits and the focus of the Company in the coming months. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the RL Mine Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 26, 2020 in the section entitled "Risk Factors", under PureGold’s SEDAR profile at www.sedar.com.
Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.