- PureGold (PGM) has suspended operations at its PureGold Mine in Ontario due to a lack of funding
- The company is withdrawing Q4 guidance and will be unable to complete its ongoing pre-feasibility study, life-of-mine plan and strategic review process
- It will default under its debt obligations if it fails to secure financing in the short term
- Discussions are ongoing with its lender, a fund managed by Sprott Resource Lending, to evaluate viable options
- PureGold is a mineral exploration company active in Red Lake, Ontario, Canada, one of the world’s richest and most prolific gold mining districts
- PureGold Mining (PGM) is down by 81.25 per cent, trading at $0.0225 per share
PureGold (PGM) has suspended operations at its PureGold Mine in Ontario due to a lack of funding.
It did not receive additional funding from the exercise of warrants connected to its May 2022 financing.
The PureGold Mine has also yet to achieve consistent positive cash flow.
As a result, the company is withdrawing guidance for Q4 2022 and will be unable to complete its ongoing pre-feasibility study, life-of-mine plan and strategic review process.
Its cash balance stands at approximately $2 million, with a net working capital deficit of approximately $13 million.
PureGold will default on its debt obligations if it fails to secure financing in the short term.
Discussions are ongoing with its lender, a fund managed by Sprott Resource Lending, to evaluate viable options, including sale or restructuring scenarios.
PureGold is a mineral exploration company active in Red Lake, Ontario, Canada, one of the world’s richest and most prolific gold mining districts.
PureGold Mining (PGM) is down by 81.25 per cent, trading at $0.0225 per share as of 1:12 pm EST.
