Pure Gold Mining (TSXV: PGM, LSE: PUR) announced Tuesday that it has raised C$12.3 million from the exercise of approximately 14.46 million share purchase warrants with a strike price of C$0.85, representing 100% of the warrants that otherwise would have expired on May 24, 2020.
On closing of the recently announced private placement, from which the company raised C$15 million, Pure Gold will have approximately C$101 million in cash along with $35 million available in an undrawn credit facility.
With approximately C$150 million available in funding and C$86 million remaining on capital expenditure to complete mine construction, the company said it is now in a position to concurrently fund an “aggressive exploration program” at its property in Red Lake, Ontario.
This program, set to begin on June 3, will include underground drilling focused on the expansion of mineral resources in areas targeted for early production, as well as expansion of new high-grade discoveries at surface and at depth.
Pure Gold added that the drilling will not impact the company’s capital budget to complete the mine, which is scheduled for its first gold pour by year-end. The mine is currently the only gold project under construction in Canada.
Shares of Pure Gold Mining were down 3.6% at midday Tuesday. The Vancouver-based gold miner has a market capitalization of C$482.2 million.