(Alliance News) - Canada's Pure Gold Mining Inc on Tuesday said it will issue further shares following a private placement in June.
Pure Gold, which owns the Madsen gold project in Ontario, announced the CAD32.5 million, or GBP19.3 million, private placing of 59.1 million shares at CAD0.55 each in June.
Sprott Capital Partners LP acted as lead underwriter, buying all of the shares in the placing. The funds were to be used for exploration and development.
However, Pure Gold is to now issue another 23.7 million shares at the same price to raise CAD13.0 million more, with the shares going to both AngloGold Ashanti Ltd and an institutional investors.
This takes the total raises by Pure Gold over the past month or so to USD45.5 million.
AngloGold, a gold miner listed in Johannesburg, already holds 14% of Pure Gold's shares, which were down 1.9% in London on Tuesday at 34.32 pence each. Pure Gold did not say how many it would hold following the share placing.
They closed 1.8% lower in Toronto on Monday at CAD0.55.