Pure Gold Mining Inc. (TSX-V: PGM) has announced the closing of a $90 million (US) project financing package with Sprott Resource Lending Corp. Financing will fully fund costs to develop an underground mine at Pure Gold’s Madsen Gold Project in Northwestern Ontario. The financing consists of a credit facility for $65 million, and a $25 million callable gold stream.
With the project fully funded, Pure Gold is also pleased to announce that its Board of Directors has approved a “decision to construct” for the Madsen Red Lake Mine. With approximately $90 million in the treasury on closing of the first tranche of this financing, and a recent Project Agreement signed with Wabauskang First Nation and Lac Seul First Nation, the company will immediately commence development activities with a goal of first gold pour by the end of 2020.
Additionally, the financial flexibility provided by this financing and the recent equity raise of $47.5 million will allow Pure Gold to continue to pursue a growth strategy, with exploration drilling expected to continue through the balance of the year.
In addition to this financing, Sprott purchased $5 million (US) units in Pure Gold’s recently completed non-brokered private placement, which closed on July 18, 2019.