Pure Gold Mining Inc. [PGM-TSXV; LRTNF-OTC] said Monday September 9 that it has started construction at its flagship Madsen Red Lake Mine in northwestern Ontario.
“Today we hit yet another milestone on our road to near term cash flow,” said Pure Gold President and CEO Darin Labrenz. “I am incredibly proud of our team for what they have accomplished over the last five years.”
The announcement comes after Pure Gold recently completed a US$90 million project financing package with Sprott Resource Lending Corp. That followed an equity raise of $47.5 million that was backed by Eric Sprott and AngloGold Ashanti Ltd. [AU-NYSE; AGG-ASX; ANG-JSE]. AngloGold currently owns approximately 14.3% of Pure Gold on a non-diluted basis.
The company said the financing would fully fund the cost of developing an underground mine at the historic Madsen Gold Project. After signing agreements with the Wabauskang First Nation and Lac Seul First Nation, the company said it was set to commence development activities immediately and is now aiming for a first gold pour by the end of 2020.
Pure Gold said it has awarded the surface Engineering and Procurement contract to JDS Energy & Mining in partnership with Hatch Ltd. and Knight Piesold. Additionally the company has awarded the underground mine design engineering contract to Dumas Mine Contracting Ltd.
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