- Pure Gold Mining Inc. (PGM) enters a private placement with a syndicate of underwriters for gross proceeds of $9 million
- Pure Hold has also agreed to a concurrent private placement with AngloGold Ashanti Limited for additional proceeds of $15.9 million
- AngloGold Ashanti will own 19.9 per cent of the outstanding common shares of Pure Gold on a partially diluted basis
- Pure Gold and AngloGold Ashanti will also enter into a shareholder rights agreement
- Pure Gold intends to use the net proceeds from the transactions to increase capacity at its Pure Gold Mine, and for general corporate purposes
- Pure Gold Mining Inc. (PGM) is down 8.73 per cent trading at $0.575 per share as of 2:02 p.m. EST
Pure Gold Mining (PGM) has announced a private placement with a syndicate of underwriters for proceeds of $9 million.
The company will issue 16,989,000 common shares at a price of $0.53 per share.
Pure Gold has granted the underwriters an over-allotment option for additional gross proceeds of up to $5 million.
Pure Gold has also agreed to a concurrent private placement with its largest shareholder, AngloGold Ashanti Limited for additional proceeds of $15.9 million.
AngloGold Ashanti will then own 19.9 per cent of the outstanding shares of Pure Gold on a partially diluted basis.
AngloGold Ashanti will have the option to purchase additional shares to maintain 19.9 per cent ownership of Pure Gold.
AngloGold Ashanti will hold 95,835,442 common shares in Pure Gold and 1,653,809 warrants after completing the transactions.
Pure Gold and AngloGold Ashanti will also enter into a shareholder rights agreement.
Pure Gold will use the net proceeds to increase capacity at its Pure Gold Mine located in Red Lake, and for general corporate purposes.
The transactions are expected to close on February 15.
Pure Gold Mining Inc. (PGM) is down 8.73 per cent trading at $0.575 per share as of 2:02 p.m. EST.