- Partner News
- Media Releases
- Mainstream News
October 31, 2022
VANCOUVER, B.C. – Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”) announces that it has obtained 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”). KSV Restructuring Inc. was appointed as the monitor (the “Monitor”).
The decision to commence CCAA proceedings was made after careful consideration of PureGold’s cash position, scheduled debt payments, forecast revenue and expenses and all available alternatives to an application for creditor protection. The CCAA proceedings are intended to facilitate a restructuring of the Company’s balance sheet, the injection of additional capital, a sale of the company or its assets, or any combination thereof.
Among other things, the Initial Order authorizes PureGold to borrow under an interim financing credit facility from its lending partner, Sprott Private Resource Lending II (Collector) LP, in order to meet the Company’s immediate cash needs for the continuation of its business activities and preservation of its property. 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.
The Monitor has set up a website at: https://www.ksvadvisory.com/experience/case/pure-gold-, where updates on the restructuring process, the Monitor’s reports to the Court, Court orders and other information will be posted as soon as they are available.
About Pure Gold Mining Inc.
PureGold is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The Company owns and operates 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.
ON BEHALF OF THE BOARD
Mark O’Dea, President & CEO
Adrian O’Brien, Director, Marketing and Communications
86 total views, 2 views today