Pure Gold Mining Inc (CVE:PGM) (LON:PUR) said it has enough funds to kick off exploration drilling at its Red Lake gold mine development project in Ontario, as it revealed it had raised C$12.3 million from an exercise of share purchase warrants.
The firm is currently building the mine – the highest-grade underground project in Canada.
"With approximately $150 million available in funding, and $86 million remaining on capital expenditure to complete our mine construction, the company is in a uniquely solid financial position to be able to concurrently fund an aggressive exploration program," Pure Gold said in a statement.
The exploration program is earmarked to begin on June 3 and will include drilling in a bid to expand resources in areas targeted for early production, as well as expanding high-grade discoveries at surface and at depth across the 47 square kilometre asset.
"Our mine has all the attributes of a company maker – location, grade, size, and transformative growth potential," Darin Labrenz, Pure Gold's chief executive said.
"The opportunity for value creation is tremendous, with near term cash flow delivered in a rising gold market, and a strong organic growth platform to build out our vision of a long-life growth company. Having only scratched the surface across our 7+ kilometre long high-grade gold system, we are taking measures to expedite our growth plan."
The C$12.3 million was raised from the exercise of more than 14.4 million share purchase warrants with a strike price of C$0.85, representing all the warrants which would have otherwise expired on May 24 this year, the company noted.
Coupled with the closing of the recently announced placing,Read More – Source
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