The company had declared commercial production last month at PureGold in the province’s Red Lake district.

The placement was priced at $1.05 per unit.

Pure Gold said it intended to use the net proceeds to fund the continued ramp up of operations at the mine, underground drilling and development of the high-grade 8 Zone and for general corporate purposes.

It had raised $17.3 million in May at $1.52 per flow-through share for development expenses at PureGold and amended a facility with Sprott Lending in March “to address the need for additional liquidity as a result of operational issues encountered during the first quarter”.

The mine produced 10,075 ounces of gold in first half of 2021 and is expected to produce 27,000-32,000oz in the current half.

It was forecast to produce an average annual 80,000oz over 12 years in a 2019 feasibility study.

Pure Gold shares (TSXV: PGM) have headed lower since a December peak of $3.08, to touch a one-year low of 81c intraday.

They closed down 2.3% to 85c, valuing it about $335 million (US$264 million).


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