Pure Gold Mining Inc. (TSX-V: PGM) (LSE: PUR) is pleased to announce that the Company has raised $12.3 million from the exercise of 14,465,000 share purchase warrants with a strike price of $0.85, representing 100% of the Warrants that otherwise would have expired May 24, 2020.

On closing of the recently announced private placement, PureGold will have approximately $101 million in cash, along with $US35M available in an undrawn credit facility. 

With approximately $150 million available in funding, and $86 million remaining on capital expenditure to complete our mine construction, the Company is in a uniquely solid financial position to be able to concurrently fund an aggressive exploration program.   Commencing June 3^rd this program will include underground drilling focused on the expansion of mineral resources in areas targeted for early production, as well as expansion of new high-grade discoveries at surface and at depth across our 47km² property.  This drilling will enable us to accelerate our resource growth plan, without impacting our capital budget for final mine completion and first gold pour.

“The past week has bolstered our balance sheet and added depth to our shareholder base.  I’d like to thank our long-term shareholders, including AngloGold Ashanti for maintaining their shareholdings in Pure Gold (at ~15%) through the exercise of Warrants.  And I’d also like to thank Eric Sprott for his increased support (~12%) and for recognizing not only the value of our near term gold production, but also the explosive value creation that comes from ongoing discoveries and resource growth in one of the highest grade mines in the world.” says Darin Labrenz, President and CEO.  “Our mine has all the attributes of a company maker – location, grade, size, and transformative growth potential.  The opportunity for value creation is tremendous, with near term cash flow delivered in a rising gold market, and a strong organic growth platform to build out our vision of a long-life growth company.    Having only scratched the surface across our 7+ kilometre long high grade gold system, we are taking measures to expedite our growth plan. New funds will be earmarked for aggressive exploration work that will fast track discovery and resource development in a phased approach to realizing the true potential of our scalable PureGold mine.”

About Pure Gold Mining Inc.

The PureGold Red Lake Mine 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 production 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.