Pure Gold Mining Inc. (CVE:PGM) (LON:PUR) said it has closed its previously-announced offering of “CDE flow-through shares” at an issue price of $1.52 each for gross proceeds of $17,250,024 which includes the full exercise of the underwriters’ over-allotment option.
The gross proceeds from the offering will be used on development expenses on the PureGold Mine Project located in the Red Lake District in Ontario as permitted under the Tax Act to qualify as Canadian development expenses (CDE). The company said it will renounce all the CDE in favour of the subscribers of the CDE flow-through shares effective on or before December 31, 2021.
READ: Pure Gold Mining says first gold was poured at the company’s high-grade PureGold Mine, in Red Lake
The offering was completed under an underwriting agreement dated April 14, 2021, with a syndicate of underwriters led by Clarus Securities, and including Canaccord Genuity, Sprott Capital Partners, Stifel Nicolaus Canada, Haywood Securities’ and PI Financial Corp.
The company filed a short form prospectus in the provinces of British Columbia, Alberta and Ontario, under National Instrument 44-101-Short Form Prospectus Distributions to qualify for distribution of the CDE flow-through shares in the offering.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933 or any US 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 such Act and applicable US state securities laws.
PureGold Mining is a growth company, located in the very heart of Red Lake, Canada. Its objective is to develop a highly profitable long-life gold mining company, becoming Canada’s next iconic gold producer.
The company is seeking to expand organically and develop Pure Gold’s multi-million-ounce high grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
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