Pure Gold Contemplates Asset Sale or Merger as Part of Strategic Review

SEATTLE (Scrap Monster): Vancouver, B.C.-based Pure Gold Mining announced launch of a strategic review process, which could potentially involve sale or merger of the company, sale in full or part of its Ontario gold mine, along with other long-term alternative financing deals.

ALSO READ:

Pure Gold Mining Announced Robust Q4 and Full Year 2021 Results

Pue Gold Mining Hit Production Milestone at Red Lake Mine

Also, the company announced closing of the previously announced $6 million additional credit facility from Sprott Resource Lending Corp. The parties have agreed to a second amendment of the restated credit agreement. Sprott has provided the company with an additional secured, first-priority, non-revolving credit facility, whose maximum principal amount has been fixed at $6 million. The first drawdown from the facility that matures at the end of the current year is expected as of June 30, 2022.

The company has also agreed with Sprott to defer the first four scheduled principal repayments.

The company press release announced postponement of its 2022 guidance update to August 2022. It must be noted that the company had previously scheduled to release the guidance update in June 2022.

Mark O’Dea, President & CEO of PureGold noted that the strategic review aims to explore potential alternatives for maximizing shareholder value and generating the company’s financial strength.