TIDMPUR
RNS Number : 6969E
Pure Gold Mining Inc.
31 October 2022
NEWS RELEASE 22-26 October 31, 2022
PureGold Applies for Initial Order for CCAA Protection
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
VANCOUVER, B.C. - 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.
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END
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