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VANCOUVER, British Columbia, Oct. 31, 2022 (GLOBE NEWSWIRE) -- 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.
Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com
ON BEHALF OF THE BOARD
"Mark O’Dea"
Mark O’Dea, President & CEO
Investor inquiries:
Adrian O’Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to the Company’s expectations that the PureGold Mine will remain on care and maintenance throughout the CCAA proceedings; the Company’s expectations to remain responsible for the day-to-day operations, under the general oversight of the Monitor and expectations with respect to the receipt of authorization from the Court of the Credit Facility, including expectations regarding approval for increased borrowing under the Credit Facility. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the CCAA proceedings and the impact of the same on the Company’s operations; securing financing or undertaking a restructuring transaction and the timing thereof; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration and development activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 30, 2022 in the section entitled "Risk Factors", under PureGold’s SEDAR profile at www.sedar.com.
Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
