South Africa-based miner AngloGold Ashanti has invested an additional $5-million into Canadian miner PureGold, which is developing a mine in Ontario, Canada.
The gold major exercised 5 036 250 share purchase warrants with a strike price of $0.85, increasing its interest in PureGold to 16% - maintaining its position as the junior’s single largest shareholder.
"AngloGold Ashanti have once again demonstrated their strong support of PureGold as we complete construction and prepare for first gold pour at our Pure Gold mine,” said PureGold president and CEO Darin Labrenz.
With about $120-million available in funding, and $72-million remaining on capital expenditure, the TSX-V and LSE-listed firm is in a solid financial position to complete the mine construction, in Red Lake.
The mine will be an 800 t/d underground operation with a 12-year mine life.
With probable mineral reserves of 3.5-million tonnes at 9 g/t, containing one-million ounces of gold, including a mineral resource of 7.19-million indicated tonnes grading 8.9 g/t gold for 2.06-million ounces of gold and 1.88-million inferred tonnes grading 7.7 g/t gold for 467 000 oz of gold, the Pure Gold mine is the highest grade development stage gold deposit in Canada today.
The orebody is an “exceptional foundation” on which to build a gold mining company, Labrenz previously said.
The company is advancing an aggressive exploration programme.