NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
PURE GOLD CLOSES PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING FOR GROSS PROCEEDS OF C$19.2 MILLION
VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”) is pleased to announce that it has closed the bought-deal private placement announced on October 12, 2017 and upsized on October 18, 2017 (the “Upsized Offering”).
Pursuant to the Upsized Offering, the Company issued a total of 8,690,000 Super FT Shares at C$0.725 per Super FT Share, 8,061,125 FT Shares at C$0.64 per FT Share and 14,862,167 Common Shares at C$0.52 per Common Share. This includes the partial exercise of the Underwriters’ Option of 248,125 FT Shares and 1,400,167 Common Shares. The securities issued under the Upsized Offering will have a hold period of four months and one day from closing.
The Upsized Offering was completed through a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. In connection with the Upsized Offering, the Company paid to the Underwriters a cash commission equal to 6.0% of the gross proceeds of the Upsized Offering.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ABOUT PURE GOLD
Our 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, Ontario. And become Canada’s next iconic gold company.
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, President & CEO
Investor inquiries: Tel: 604-646-8000
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.