Canadian junior Pure Gold Mining on Thursday announced a C$25-million capital raising to complete the ramp-up of operations to design capacity at its namesake mine in Red Lake, Ontario.
The company will raise the capital through a bought-deal financing of nearly $17-million shares at C$0.53 each for gross proceeds of C$9-million, and a concurrent private placement with major shareholder AngloGold Ashanti for another C$16-million.
AngloGold will own 19.9% of the outstanding shares of Pure Gold on a partially diluted basis, up from the 14.9% it previously held on a nondiluted basis.
“We are delighted to announce this financing with the support of our largest shareholder, AngloGold Ashanti. We value the global operational expertise AngloGold Ashanti brings and look forward to working collaboratively with their technical team to continue to unlock the full potential of the PureGold mine,” said president and CEO Troy Fierro.
The transactions are expected to close on February 15, 2022 and are subject to certain conditions including receipt of all applicable regulatory approvals, the approval of the TSX-V and, for the AngloGold subscription, the approval of the South African Reserve Bank.