VANCOUVER, Sept. 28, 2021 - Pure Gold Mining Inc. (TSXV:PGM LSE:PUR) ("PureGold" or the "Company") is pleased to announce that it has closed its previously announced bought deal offering of 21,905,200 units of the Company ("Units") at a price of C$1.05 per Unit for gross proceeds to the Company of C$23,000,460, which includes the full exercise of the underwriters' over-allotment option for an additional 2,857,200 Units (the "Offering"). Each Unit is comprised of one common share (each a "Common Share") and one-half Common Share purchase warrant (each such full warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$1.36 until March 28, 2023.
The Offering was completed pursuant to an underwriting agreement dated September 14, 2021 entered into among the Company and a syndicate of underwriters led by National Bank Financial Inc., and including Clarus Securities Inc., Desjardins Securities Inc., Stifel Nicolaus Canada Inc., Haywood Securities Inc., PI Financial Corp. and Sprott Capital Partners LP.
The Company intends to use the net proceeds raised from the Offering to fund the continued ramp up of operations at its 100%-owned PureGold Mine Project located in Red Lake, Ontario, underground drilling and development of the high-grade 8 zone, and for general corporate purposes.
The Company filed a short form prospectus dated September 21, 2021 (the "Prospectus") in all the provinces of Canada, other than Quebec, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions to qualify for distribution the Units offered pursuant to the Offering. Copies of the Prospectus and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under PureGold's issuer profile.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT PURE GOLD MINING INC.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada's next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold's multi-million ounce high grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
For further information:
Director, Marketing and Communications
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, and the anticipated use of proceeds from the Offering. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.