Pure Gold Mining Inc. (TSX-V:PGM) (LSE:PUR) is pleased to announce that it has closed its previously announced bought deal offering of 21,905,200 units of the Company at a price of C$1.05 per Unit for gross proceeds to the Company of C$23,000,460, which includes the full exercise of the underwriters’ over-allotment option for an additional 2,857,200 Units. Each Unit is comprised of one common share and one-half Common Share purchase warrant. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$1.36 until March 28, 2023.
The Offering was completed pursuant to an underwriting agreement dated September 14, 2021 entered into among the Company and a syndicate of underwriters led by National Bank Financial Inc., and including Clarus Securities Inc., Desjardins Securities Inc., Stifel Nicolaus Canada Inc., Haywood Securities Inc., PI Financial Corp. and Sprott Capital Partners LP.
The Company intends to use the net proceeds raised from the Offering to fund the continued ramp up of operations at its 100%-owned PureGold Mine Project located in Red Lake, Ontario, underground drilling and development of the high-grade 8 zone, and for general corporate purposes.
The Company filed a short form prospectus dated September 21, 2021 in all the provinces of Canada, other than Quebec, pursuant to National Instrument 44-101 — Short Form Prospectus Distributions to qualify for distribution the Units offered pursuant to the Offering. Copies of the Prospectus and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under PureGold’s issuer profile.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT PURE GOLD MINING INC.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada’s next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold’s multi-million ounce high grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
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We acknowledge the [financial] support of the Government of Canada.