Loading ...Cash-strapped Pure Gold Mining (TSXV: PGM; LSE: PUR) is making a non-brokered private placement of 200 million units at a price of C$0.15 each as a means of raising C$30 million (about $23m) for its PureGold mine in Red Lake, Ontario.
Each unit will consist of one common share and one share purchase warrant. The warrants are transferrable and entitle the holder to acquire one more Pure Gold share for C$0.18 during a period of six months, subject to certain adjustments.
The company will pay a cash finder’s fee of 6% of the aggregate proceeds raised from subscriptions arranged by certain finders.
Pure Gold may also issue an additional 66.7 million units, taking the gross proceeds up to C$40 million if there is a demand for them.
Pure Gold to raise $23 million to ramp up mine output, cut costs at Red Lake