TIDMPUR
RNS Number : 8390M
Pure Gold Mining Inc.
14 May 2020
NEWS RELEASE 20- 07 May 14 , 2020
PURE GOLD REPORTS FIRST QUARTER FINANCIAL RESULTS
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR)
("Pure Gold" or the "Company") is pleased to announce that its
unaudited condensed interim consolidated financial statements
("Financial Statements") for the first quarter ended March 31, 2020
and the accompanying Management's Discussion and Analysis are
available for download on the Company's website at
www.puregoldmining.ca at under the Company's SEDAR profile at
www.sedar.com .
Financial and Operating Highlights for the quarter and to
date:
During the three months ended March 31, 2020, the Company
advanced construction and underground development activities at its
100%-owned Pure Gold Red Lake Mine Project ("RL Mine Project" or
the "Project"). A summary of the highlights for the three months
ended March 31, 2020 and to date are as follows:
-- Significantly advanced the RL Mine Project
In addition to support from a number of experienced local
contractors, including First Nations partners, the Company is
successfully advancing the recruitment process with approximately
60 hires completed for the site operations team, including
management, technical staff, supervisors and operators, as well as
placements in safety, environmental, and administration
services.
Significant earthworks, road and utilities infrastructure
upgrades, and equipment installation is currently underway on
surface at the site. Detailed engineering in the process plant is
95% complete, and the company has placed purchase orders for
long-lead items for 80% of packages, based on value. Underground
development is proceeding ahead of schedule. As part of the test
mining program, pre-production underground ramp development was
initiated on December 12, 2019 and is progressing at an accelerated
pace.
Engineering and Procurement activities continue at the Project,
with only minor delays encountered to date while engineers and
vendors transitioned to working remotely because of Covid-19.
Operation at the site have been adapted to minimize the risk of
virus transmission through new screening, sanitary, hygiene, and
physical distancing procedures. Currently, t he Project remains on
track to deliver ore to the mill by the end of 2020.
-- Ms. Maryse Bélanger joins the Board of Directors.
In February 2020, Ms. Maryse Bélanger joined the Board of
Directors. Ms. Bélanger brings over 30 years of experience with
senior gold companies and strengths in operational excellence and
efficiency, technical studies and services to the Board. She has
provided oversight and project management support through some of
the mining industry's key strategic acquisitions.
-- Additional draw under Credit Facility
Subsequent to quarter end, the Company received a further
US$19.6 million, net of a 2% original issue discount, under its
Credit Facility with Sprott Lending. The Company currently has
$78.7 million in cash on hand.
Selected Financial Data
The following selected financial data is derived from our
Financial Statements and related notes thereto for the periods
indicated, as prepared in accordance with International Financial
Reporting Standards. Details of these results are described in the
unaudited condensed interim consolidated financial statements and
Management's Discussion and Analysis for the three months ended
March 31, 2020.
For the three For the three
months ended months ended
March 31, March 31,
2020 2019
---
Net income (loss) for the period attributable
to shareholders $ 8,656,762 $ (2,834,833)
Total comprehensive income (loss) for
the period $ 8,656,762 $ (2,834,833)
Basic and Diluted Income (Loss) per
Share $ 0.02 $ (0.01)
--- -------------- --------------
As at March 31,2020 As at December 31, 2019
--- -------------------- ------------------------
Total assets $ 140.1 million $ 130.6 million
Current liabilities $ 12.4 million $ 8.2 million
Non-current liabilities $ 69.0 million $ 72.8 million
Cash dividends declared $ - $ -
------------------------- --- -------------------- ------------------------
This press release should be read in conjunction with Pure
Gold's Condensed Interim Consolidated Financial Statements and
Management's Discussion and Analysis for the three months ended
March 31, 2020. In addition, for further information please see
Pure Gold's Annual Information Form for the fiscal period ended
December 31, 2019. These documents can be found on the Company's
website ( www.puregoldmining.ca ) or under the Company's profile on
SEDAR at www.sedar.com . Shareholders may receive a printed copy of
the audited consolidated financial statements, free of charge, upon
request.
Qualified Persons and 43-101 Disclosure
Darin Labrenz, P. Geo., President & CEO for the Company, is
the designated Qualified Person for this news release within the
meaning of National Instrument 43-101 ("NI 43-101") and has
reviewed and verified that the technical information contained
herein is accurate and approves of the written disclosure of
same.
About Pure Gold Mining Inc.
The Pure Gold Red Lake Mine is Canada's highest grade gold mine
development project. Fully funded, the project is on track to
deliver near term gold production into a rising Canadian gold price
environment, with first production scheduled for late 2020. The
orebody is situated within a seven- kilometre long gold system that
is wide open for expansion at depth and along strike, and multiple
discoveries by the Company suggest potential opportunities for
near-term growth.
Additional information about the Company and its activities may
be found on the Company's website at www.puregoldmining.ca and
under the Company's profile at www.sedar.com .
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements in this press release, other than statements of
historical fact, are "forward-looking information" with respect to
Pure Gold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address proposed timing of development plans for the RL Mine
Project, timing of expected production, expected capital costs,
expected development schedule and the focus of the Company in the
coming months . Forward-looking information is often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "planned", "expect", "project",
"predict", "potential", "targeting", "intends", "believe",
"potential", and similar expressions, or describes a "goal", or
variation of such words and phrases or state that certain actions,
events or results "may", "should", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management at the date the
statements are made including, among others, assumptions about
future prices of gold and other metal prices, currency exchange
rates and interest rates, favourable operating conditions,
political stability, obtaining governmental approvals and financing
on time, obtaining renewals for existing licences and permits and
obtaining required licences and permits, labour stability,
stability in market conditions, availability of equipment, accuracy
of any mineral resources, successful resolution of disputes and
anticipated costs and expenditures. Many assumptions are based on
factors and events that are not within the control of Pure Gold and
there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
interpretation of results at the RL Mine Project ; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration activities
generally; delays in permitting; possible claims against the
Company; the timing of future economic studies; labour disputes and
other risks of the mining industry; delays in obtaining
governmental approvals, financing or in the completion of
exploration as well as those factors discussed in the Annual
Information Form of the Company dated March 20, 2019 in the section
entitled "Risk Factors", under Pure Gold's SEDAR profile at
www.sedar.com .
Although Pure Gold has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Pure Gold disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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