RED LAKE / VANCOUVER – MINING – Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”) announces that it has applied for an Initial Order for creditor protection (the “Initial Order”) from the Supreme Court of British Columbia (the “Court”) under the Companies’ Creditors Arrangement Act (the “CCAA”).
After careful consideration of PureGold’s cash position, scheduled debt payments, forecast revenue and expenses, all available alternatives to an application for creditor protection, and following thorough consultation with legal and financial advisors, the board of directors of the Company has determined that it is in the best interests of PureGold and all of its stakeholders to file an application for creditor protection under the CCAA.
The Initial Order being sought today includes, among other things: (i) a stay of creditor claims and proceedings in favor of PureGold; (ii) authorization for PureGold to borrow under an interim financing credit facility (the “Credit Facility”) from its lending partner, Sprott Private Resource Lending II (Collector) LP, in order to meet the Company’s immediate cash needs including for the preservation of its property and other assets; and (iii) the appointment of KSV Restructuring Inc. as court-appointed monitor of PureGold (in such capacity, the “Monitor”). While under creditor protection, PureGold will consider all available transactional and restructuring options with a goal of maximizing value for the Company and its stakeholders.
Following receipt of the Initial Order, the Company expects the PureGold Mine will remain in care and maintenance. Management of PureGold is expected to remain responsible for the day-to-day operations, under the general oversight of the Monitor. Information about PureGold’s CCAA proceedings can be found at the Monitor’s website at: https://www.ksvadvisory.com/experience/case/pure-gold-
About Pure Gold Mining Inc.
PureGold is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The Company owns the PureGold Mine, which began gold production in 2021 after the successful construction of an 800 tpd underground mine and processing facility. The PureGold Mine is centered on a forty-seven square kilometre property with significant discovery potential.
