(Alliance News) - Pure Gold Mining Inc on Tuesday said it has raised CAD12.3 million, around USD8.9 million, through an exercise of 14.5 million share purchase warrants at CAD0.85 each.
The gold developer said the exercise is for the entirety of warrants which would have expired this past Sunday.
Following the share exercise and upon completion of the CAD15 million placing carried out earlier in May, Pure Gold will have cash of around CAD101 million, plus USD35 million available in an undrawn credit facility.
The Vancouver, Canada-headquartered company said the new cash will be used to fund an "aggressive" exploration programme. Commencing next Wednesday, its programme will comprise 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 its PureGold Red Lake mine in Ontario, Canada.
"The past week has bolstered our balance sheet and added depth to our shareholder base. 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, said Chief Executive & President Darin Labrenz
"Having only scratched the surface across our 7-plus 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," he added.
Pure Gold stock closed at 76.50 pence each on Tuesday in London and at CAD1.32 on the Canadian Venture Exchange.
By Ife Taiwo; ifetaiwo@alliancenews.com
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