Pure Gold Mining Inc said it has filed a short form prospectus for the distribution of 19,048,000 units of the company for an offering price of $1.05 per unit, totaling $20,000,400.
The Vancouver-based company is focused on its namesake and flagship project, the PureGold Mine, located in Red Lake, Ontario.
According to the company, the units will be issued and sold as stipulated in a previous agreement between Pure Gold, National Bank Financial Inc -which serves as lead underwriter and sole bookrunner- and Clarus Securities Inc, Desjardins Securities Inc, Stifel Nicolaus Canada Inc, Haywood Securities Inc, PI Financial Corp and Sprott Capital Partners LP (collectively referred to as underwriters).
READ: Pure Gold Mining inks agreement for bought-deal offering to raise gross proceeds of C$20.04 million
The offering price was determined by arm’s length negotiation between the company and the lead underwriter, on behalf of the underwriters.
Each unit consists of one common share of the company, and half of one common share purchase warrant, entitling the holder to acquire one common share for $1.36 per warrant share for up to 18 months following the closing date.
“The warrants will be governed by a warrant indenture to be entered into on or before the closing date between the company and Computershare Trust Company of Canada, the warrant agent,” the company said. “The Units will separate into Unit Shares and Warrants, as applicable, immediately upon distribution and the Unit Shares and Warrants will be issued separately.”
All outstanding common shares of Pure Gold are listed for trading on the TSX Venture Exchange under the trading symbol ‘PGM’, as well as the London Stock Exchange under the trading symbol ‘PUR’.
The gold developer also noted that on September 7, 2021, the last full trading day prior to the public announcement of the offering, the closing price of each common share on the TSX-V and the LSE was $1.15 and GBP0.73, respectively, and on September 20, 2021, the last trading day prior to filing the prospectus, shares were valued at $0.96 and GBP0.555, respectively.
Pure Gold has received conditional approval from the TSX-V for the listing of the unit shares and warrants.
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