Pure Gold ar­ranges $12-mil­lion fi­nanc­ing

Stockwatch Daily - - MINES & METALS - Mr. Darin Labrenz re­ports

PURE GOLD Min­ing Inc. has en­tered into an agree­ment with Mac­quarie Cap­i­tal Mar­kets Canada Ltd. on be­half of a syn­di­cate of un­der­writ­ers, whereby the un­der­writ­ers will pur­chase for their own ac­count or ar­range for sub­sti­tuted pur­chasers to pur­chase on a bought-deal pri­vate place­ment ba­sis 19,821,000 com­mon shares of the com­pany for ag­gre­gate gross pro­ceeds to Pure Gold of $12,000,670.

The of­fer­ing will con­sist of three tranches. The first tranche will con­sist of 5,518,000 com­mon shares of

the com­pany that qual­ify as flow-through shares for the pur­poses of the In­come Tax Act (Canada) and will be is­sued at a price of 72.5 cents per su­per-FT share. The sec­ond tranche will con­sist of 4,688,000 com­mon shares of the com­pany that qual­ify as flow-through shares for the pur­poses of the In­come Tax Act (Canada) and will be is­sued at a price of 64 cents per FT share. The third tranche will con­sist of 9,615,000 com­mon shares of the com­pany and will be is­sued at a price of 52 cents per com­mon share.

The un­der­writ­ers shall also have the op­tion to pur­chase from Pure Gold from tranche one up to an ad­di­tional 1,379,500 su­per-FT shares at the su­per-FT share is­sue price, from tranche two up to an ad­di­tional 1,172,000 FT shares at the FT share is­sue price and from tranche three up to an ad­di­tional 2,403,750 com­mon shares at the com­mon share is­sue price. The of­fer­ing will take place by way of a pri­vate place­ment to qual­i­fied in­vestors in such prov­inces of Canada as the un­der­writ­ers may des­ig­nate, and oth­er­wise in those ju­ris­dic­tions where the of­fer­ing can law­fully be made. The se­cu­ri­ties to be is­sued un­der the of­fer­ing will have a hold pe­riod of four months and one day from clos­ing.

The gross pro­ceeds raised from the sale of the su­per-FT shares will be used by the com­pany for ex­plo­ration fi­nanc­ing in the prov­ince of On­tario that will qual­ify as Cana­dian ex­plo­ration ex­penses (CEE) and flow-through min­ing ex­pen­di­tures for pur­poses of the In­come Tax Act (Canada) and as el­i­gi­ble On­tario ex­plo­ration ex­pen­di­tures within the mean­ing of the Tax­a­tion Act, 2007 (On­tario). The gross pro­ceeds raised from the sale of the FT shares will be used by the com­pany for ex­plo­ration fi­nanc­ing that will qual­ify as CEE only. The net pro­ceeds raised from the sale of the com­mon shares will be used by the com­pany for ex­plo­ration and de­vel­op­ment of the com­pany’s Madsen gold project, as well as for gen­eral work­ing cap­i­tal pur­poses.

It is ex­pected that the clos­ing of the of­fer­ing will oc­cur on or about Nov. 1, 2017, and is sub­ject to the sat­is­fac­tion of cer­tain con­di­tions, in­clud­ing re­ceipt of all ap­pli­ca­ble reg­u­la­tory ap­provals in­clud­ing the ap­proval of the TSX Ven­ture Ex­change.

In con­sid­er­a­tion for their ser­vices, the un­der­writ­ers will re­ceive a cash com­mis­sion equal to 6.0 per cent of the gross pro­ceeds of the of­fer­ing, in­clud­ing any pro­ceeds re­al­ized on ex­er­cise of the un­der­writ­ers’ op­tion.

About Pure Gold Min­ing Inc.

The com­pany’s man­date is pure and sim­ple. To dream big. To colour out­side the lines. To use smart sci­ence and cre­ativ­ity to un­lock the next ma­jor dis­cov­ery at the Madsen gold project in Red Lake, Ont.

We seek Safe Har­bor.

Le­nard F Bog­gio, Dougald Graeme Cur­rie, Troy John Fierro, Darin Mark Labrenz, Mark Gerard O’Dea, Robert Bruce Pease

(PGM) Shares: 191,606,092

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