Embattled precious metals miner Pure Gold Mining on Monday announced that it had applied for an initial order for creditor protection from the Supreme Court of British Columbia, having considered its cash position, debt repayments and forecast revenue.
PureGold stated that the initial order sought a stay of creditor claims and proceedings, authorisation to borrow under an interim financing credit facility from its lending partner, Sprott Private Resource Lending II, and the appointment of KSV Restructuring as court-appointed monitor of PureGold.
While under creditor protection, PureGold would consider all available transactional and restructuring options with a goal of maximizing value for the company and its stakeholders, the TSX-V- and LSE-listed company said.
The PureGold mine, in Ontario, will remain on care and maintenance and the management of the company will remain responsible for day-to-day operations, under the oversight of KSV.
PureGold placed its mine on care and maintenance a week ago, having run out of money to continue operations. At the time, the company explained that its namesake mine had not yet achieved consistent positive site-level cash flow and that expected additional funding had not materialised.