Pure Gold arranges $12-million financing
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