- Eric Sprott is continuing his string of investments in Canadian gold and silver with the purchase of a C$15 million stake in PureGold Mining (TSXV:PGM)
- Under the terms of a previously announced non-brokered private placement, PureGold issued a total of 9.87 million flow-through shares, all of which were purchased by Eric
- The company intends to use the proceeds to fund a drill program at its Red Lake Mine
- As consideration for their services, PureGold has issued a finders fee to a syndicate of advisors worth six per cent of the total funds raised
- PureGold Mining (PGM) is currently down 0.75 per cent and is trading at $1.32 per share
Eric Sprott is continuing his string of investments in Canadian gold and silver with the purchase of a C$15 million stake in PureGold Mining (TSXV:PGM).
Pursuant to a non-brokered private placement announced on May 20, 2020, PureGold issued a total of 9.87 million flow-through shares at a price of $1.52 each, all of which were purchased by Eric.
With the transaction now complete, Eric has increased his holding in the company to approximately 12 per cent.
As consideration for their services, a syndicate of financial advisors led by Clarus Securities have been paid a finder’s fee worth six per cent of the total proceeds.
Darin Labrenz, President and CEO of PureGold Mining, said the additional capital will give the company greater flexibility to undertake an aggressive drilling campaign at its Red Lake Mine.
“While we remain completely focused on our fully-funded mine construction and ramp-up, we strongly believe our mine plan is both scalable, and has the potential to expand.
“This investment allows us to begin building out our future growth today, concurrent with mine construction activities which remain on-track for first gold production in the fourth quarter of 2020,” he added.
Located in the Red Lake Gold Mining District of northwestern Ontario, PureGold’s Red Lake Mine is considered to be the highest-grade development-stage gold deposit in Canada.
Based on a feasibility study from February last year, the mine is expected to be a 12-year, high-grade underground mining operation with a production rate of roughly 800 tonnes per day.
According to existing estimates, the Red Lake Mine has a current indicated resource of 2.06 million ounces of gold at a grade of 8.9 grams per tonne, and an inferred resource of 467,000 ounces of gold at 7.7 grams per tonne.
PureGold Mining (PGM) is down 0.75 per cent and is trading at $1.32 per share at 2:12pm EDT.