news release
Pure Gold Mining Inc. Enters Into a Bought Deal Agreement for Gross Proceeds of C$10,001,600 04/08/2021 10:03 AM ET
Pure Gold Mining Inc. Enters Into a Bought Deal Agreement for Gross Proceeds of C$10,001,600
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VANCOUVER, British Columbia, April 08, 2021 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSXV:PGM LSE:PUR) ("Pure Gold Mining Inc." or the "Company") has today entered into an agreement with Clarus Securities Inc., as lead underwriter, on behalf of a syndicate of underwriters (collectively, the "Underwriters") under which the Underwriters have agreed to purchase, on a bought deal basis, or alternatively to arrange for the purchase of, as agent for substituted purchasers, 6,580,000 flow-through common shares (the "Flow-Through Shares") for aggregate gross proceeds of C$10,001,600 (the "Offering"). The Flow-Through Shares will be priced at at $1.52 per Flow-Through Share. The Company has also granted to the Underwriters an over-allotment option to purchase an additional 987,500 Flow-Through Shares on the same terms as the Offering for a period ending 30 days following the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$11,501,840.
The Securities will be offered in the provinces of British Columbia, Alberta, and Ontario by short form prospectus.
The Offering is expected to close on May 5, 2021, subject to customary conditions and all regulatory approvals including the approval of the TSX Venture Exchange.
The gross proceeds raised from the Offering will be used by the Company to finance "Canadian development expenditures", as defined in the Income Tax Act (Canada), on its property in Ontario.