Pure Gold Mining - Director, Mark O'Dea
Director, Mark O'Dea
Source: Stratum International
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  • Pure Gold Mining (PGM) has finalized several agreements with its lending partner, a fund managed by Sprott Resource Lending Corp.
  • A new debt repayment schedule has been agreed upon to enhance the company’s liquidity and provide financial flexibility
  • Sprott has provided PureGold with an additional secured, first-priority, non-revolving credit facility up to a maximum principal amount of US$6 million
  • PureGold has agreed with Sprott to defer the first four scheduled principal repayments
  • PureGold is a Canadian gold mining company, located in the heart of Red Lake, Ontario
  • Pure Gold Mining Inc. opened the day’s trading at C$0.155 per share

Pure Gold Mining (PGM) has finalized several agreements with its lending partner, a fund managed by Sprott Resource Lending Corp.

A new debt repayment schedule has been agreed upon to enhance the company’s liquidity and provide financial flexibility.

PureGold also announced that its operational turnaround plan is progressing, its updated life of mine plan remains on track, and that the company is launching a strategic review process with the objective of maximizing shareholder value and the value of its PureGold mine in Ontario.

“We have initiated a strategic review process to explore potential alternatives for maximizing shareholder value and generating the financial strength to allow the PureGold Mine to achieve its potential,” said Mark O’Dea, President & CEO of PureGold.

“If we can maximize the value of the mine, we can also maximize value for our stakeholders, including but not limited to our shareholders, employees, and the local communities surrounding Red Lake,” he added.

Both companies have agreed to a second amendment of the restated credit agreement dated April 2021.

Sprott has provided PureGold with an additional secured, first-priority, non-revolving credit facility up to a maximum principal amount of US$6 million.

Furthermore, PureGold has agreed with Sprott to defer the first four scheduled principal repayments, each 2.5 per cent of the total principal amount, initially scheduled for the last day of September 2022, December 2022, March 2023, and June 2023, respectively, to the bullet payment in August 2026.

The bullet payment will increase from 35 per cent of the total principal amount to 45 per cent as a result. This creates approximately C$12 million of additional liquidity for PureGold within the next 15 months that would have otherwise been allocated to debt repayments.

The strategic review process, initiated with advisors’ assistance, might include a potential sale or merger of the company, sale of some or all of the PureGold Mine, or various other potential long-term financing alternatives.

PureGold is a Canadian gold mining company, located in the heart of Red Lake, Ontario, Canada.

Pure Gold Mining Inc. opened the day’s trading at C$0.155 per share.

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