(Alliance News) - Pure Gold Mining Inc on Friday announced it signed an agreement with Toronto, Canada-based Sprott Resource Lending and its chief executive has stepped.
Under the lending agreement, Pure Gold Mining will pursue an equity financing of at least USD5 million, the Vancouver-based gold mining company focused on Canada said.
Furthermore, its lending partner Sprott has agreed to provide an additional first-priority non-revolving credit facility of up to USD6 million to Pure Gold. Sprott will also waive any existing defaults.
Meanwhile, Pure Gold provided an executive and operational update. Chief Executive Officer Troy Fierro has stepped down in his role as CEO and president due to personal health reasons, but remains director. New interim CEO and president will be current Director Mark O'Dea.
Reporting an operational update, the firm expects positive site-level cash flow by the third quarter. It plans to transition to a state of corporate free cash flow by the first quarter of 2023.
"In addition, a new six-month mine plan is underway, which sees production growing steadily from April through September underpinned by 60,000 metres of definition drilling completed since November 2021," Pure Gold Mining added.
Pure Gold Mining shares were 29% higher at 16.43 pence each in London on Friday morning.
By Tom Budszus; tombudszus@alliancenews.com
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