Red Lake Madsen Mine Ltd LRTNF

Metals & Mining Gold

Pure Gold Mining Inc is a gold mining company, located in the heart of Red Lake, Ontario, Canada. Its vision is pure and simple, to build a profitable, multi-generational growth company in the world-class gold mining district of Red Lake. With 100%-owned, fully constructed operating PureGold Mine, a multi-million-ounce gold endowment, and significant exploration upside, the company's value-maximizing strategy is to pursue operational excellence, while investing in systematic exploration and phased expansions to fuel discovery and growth for the future.

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Red Lake Madsen Mine Ltd

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Post by Digger0144on Apr 06, 2022 8:54pm

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Post# 34582656

Capitulation...Financing to be done in Tranches

I believe what we have witnessed over the last number of trading days is capitulation which leads to opportunity for those that are not faint of heart.

The story will not end here...Eric Sprott is into this play for 30 million and AngloGold Ashanti holds 19.9% of the stock.

The cheapest warrants are set to expire July 18, 2022 ...31.8 million @ $.85.

I believe the financing will be done in multiple tranches and will only continue upon monthly reviews as milestones are achieved...if not..further financing is out of the question at each step. That would work out to the 50 million over the next six months.

There is most definitely a trade here...stories like this do not end this way.

Loans and Borrowing at this time amount to 91 million US.

Cash and Liquidity

At the date of this news release, the Company’s cash balance is approximately $9 million. The Company expects it will need to seek additional financing in the next 30 days to fund operations and to service the interest on its debt. The Company is working collaboratively with its lending partner, Sprott Private Resource Lending II (Collector), LP (“Sprott”), and with its financial and legal advisors to explore a variety of potential financing solutions. If such additional financing is not received in the short term, PureGold will not be able to meet its obligations as they become due resulting in a default under its debt obligations.

The Company expects that, in total, over the next six months, it will require approximately $50 million of external financing to bring the Company to a state of sustainable positive free cash flow at the corporate level. Assuming the required capital can be secured, the Company expects to achieve sustainable positive free cash flow by the end of 2022. This external financing could take a variety of forms including debt or equity and may include proceeds from option or warrant exercises. The Company is currently evaluating several financing alternatives and will provide a further update when such information is available.

All the Best!
Digger0144