Pure Gold Mining Inc. Closing of C$17.3M Offering of Flow-Through Shares (6649X)
May 05 2021 - 9:45AM
UK Regulatory
TIDMPUR
RNS Number : 6649X
Pure Gold Mining Inc.
05 May 2021
NEWS RELEASE 21- 08
May 5, 2021
Pure Gold Mining Inc. Closes $17.3 Million Offering of
Flow-Through Shares
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY
AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, May 5, 2021 - Pure Gold Mining Inc.
(TSXV:PGM LSE:PUR) ("PureGold" or the "Company") is pleased to
announce that it has closed its previously-announced offering of
"flow-through shares" (the "Offering"), with respect to "Canadian
development expenses" ("CDE") within the meaning of the Income Tax
Act (Canada) (the "Tax Act") (the "CDE Flow-Through Shares") at an
issue price of $1.52 per CDE Flow-Through Share for gross proceeds
of $17,250,024 which includes the full exercise of the
underwriters' over-allotment option.
The Offering was completed pursuant to an underwriting agreement
dated April 14, 2021 entered into among the Company and a syndicate
of underwriters led by Clarus Securities Inc., and including
Canaccord Genuity Corp., Sprott Capital Partners L.P., Stifel
Nicolaus Canada Inc., Haywood Securities Inc. and PI Financial
Corp. Inc.
The gross proceeds from the sale of the CDE Flow-Through Shares
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 CDE. The Company will renounce all the CDE in
favour of the subscribers of the CDE Flow-Through Shares effective
on or before December 31, 2021.
The Company filed a short form prospectus in the provinces of
British Columbia, Alberta and Ontario, pursuant to National
Instrument 44-101 - Short Form Prospectus Distributions to qualify
for distribution the CDE Flow-Through Shares offered pursuant to
the Offering. Copies of the final short form prospectus and
documents incorporated by reference therein are available
electronically on SEDAR ( www.sedar.com ) under PureGold's issuer
profile.
The securities offered have not been, and will not be,
registered under the United States Securities Act of 1933 or any
U.S. 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 U.S. state
securities laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy securities in the
United States, nor will there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
ABOUT PURE GOLD MINING INC.
PureGold is a growth company, located in the very heart of Red
Lake, Canada. Our objective is pure and simple. To develop a
highly-profitable long life gold mining company, becoming Canada's
next iconic gold producer. Our plan is very disciplined, very
methodical, and financially sound. To expand organically and
develop Pure Gold Mining Inc.'s multi-million ounce high grade gold
asset incrementally, step-by-step, using a phased mining
development plan to deliver maximum return.
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O'Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
Forward-Looking Information
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning the business, operations and financial
performance and condition of the Company. Forward- looking
statements and forward-looking information in this press release
include, but are not limited to, statements with respect to the use
of proceeds of the Offering, tax treatment of the CDE Flow Through
Shares, timing of the renunciation of the CDE development expenses.
Except for statements of historical fact relating to the Company,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "plan," "expect," "project, " "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates
of the management of the Company at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of the Company and there is no assurance they will prove to
be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
statements include risks of the mining industry, the spread of
COVID-19 and the impact of government policies to ameliorate
COVID-19, failure of plant, equipment or processes to operate as
anticipated, changes in market conditions, variations in ore grade
or recovery rates, risks relating to international operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes, as well as those
factors discussed in the Annual Information Form of the Company
dated March 31, 2021 in the section entitled "Risk Factors", under
the Company's SEDAR profile at www.sedar.com. The Company cautions
that the foregoing list of important factors is not exhaustive.
Investors and others who base themselves on forward-looking
statements should carefully consider the above factors as well as
the uncertainties they represent and the risk they entail. The
Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this presentation should not
be unduly relied upon. These statements speak only as of the date
of this presentation. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
The Company 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. The
reader is cautioned not to place undue reliance on forward-looking
statements. Comparative market information is as of a date prior to
the date of this document.
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END
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