Pure Gold Mining has secured equity financing of $25 million to complete the ramp up of operations at its mine in Red Lake to its design capacity.
The transaction also increases the stake of the largest shareholder in the Vancouver company, AngloGold Ashanti, from 14.9 per cent to 19.9 per cent.
The transactions close Feb. 15.
At the end of January, Pure Gold announced it has entered into an agreement with lead underwriter National Bank Financial, acting on behalf of a syndicate of underwriters including Clarus Securities. Tamesis Partners LLP acting as special selling agent in the UK and Europe.
The undertaker were offered a private placement of almost 17 million common shares at the offering price of $0.53 per share for gross proceeds of $9,004,170. The company has also offer the underwriters an option to purchase up to an additional 9.4 million common shares to boost the gross proceeds to an additional $5 million.
Pure Gold is further signed off on a concurrent private placement of more than 30 million common shares at the offering price to AngloGold Ashanti to increase its share interest in the company by five per cent.
"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 Troy Fierro, president-CEO of Pure Gold, in a news release.
