Source: Pure Gold Mining Inc.
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  • Pure Gold Mining Inc. (PGM) closes bought deal and non-brokered private placements for $31.2 million, with AngloGold Ashanti increasing its ownership to 19.9 per cent
  • Pure Gold issued 26.4 million common shares for $14 million
  • Pure Gold issued a total of 32.5 million common shares for $17.2 million for the AngloGold subscription
  • The net proceeds received from the transactions will be used for its mine in Red Lake, Ontario and for general corporate purposes
  • Pure Gold Mining Inc. (PGM) is up 1.45 per cent and is trading at $0.70 per share as of 10:52 a.m. EST

Pure Gold Mining (PGM) has closed its bought deal and non-brokered private placements for $31.2 million.

AngloGold Ashanti increased its ownership stake to 19.9 per cent.

Pure Gold issued 26.4 million common shares for $0.53 per common share, for aggregate gross proceeds of $14 million.

The brokered offering was completed through a syndicate of underwriters. The underwriters received a cash commission equal to five per cent of the gross proceeds of the brokered offering.

Pure Gold issued a total of 32.5 million common shares for $17.2 million for the AngloGold subscription. The subscription brings AngloGold’s ownership to 19.9 per cent on a partially diluted basis.

PureGold and AngloGold entered into a shareholder rights agreement providing AngloGold with certain rights, including certain rights to PureGold’s technical and scientific data. The AngloGold subscription forms a related party transaction.

Certain directors and officers of PureGold acquired direction and control over 2.6 million common shares in the brokered offering and are also considered a related party. They now hold 3.03 per cent of PureGold.

The net proceeds received from the transactions will be used to complete operations to design capacity at the PureGold Mine in Red Lake, Ontario and for general corporate purposes.

Pure Gold Mining Inc. (PGM) is up 1.45 per cent and is trading at $0.70 per share as of 10:52 a.m. EST.

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