TIDMPUR
RNS Number : 6251Z
Pure Gold Mining Inc.
21 May 2019
NEWS RELEASE 19-11 May 21 2019
This announcement is an advertisement for the purposes of the
Prospectus Rules of the Financial Conduct Authority ("FCA") and not
a prospectus and not an offer to sell, or a solicitation of an
offer to subscribe for or to acquire, securities in any
jurisdiction, including in or into the United States, Israel,
Australia, Japan or the Republic of South Africa.
Neither this announcement nor anything contained herein shall
form the basis of, or be relied upon in connection with, any offer
or commitment whatsoever in any jurisdiction. Investors should not
purchase or subscribe for any shares referred to in this
announcement other than solely on the basis of information that is
contained in the prospectus published by the Company on 14 May 2019
("Prospectus") in connection with the proposed admission of its
common shares to the standard listing segment of the Official List
of the FCA and to trading on the main market for listed securities
of the London Stock Exchange plc ("LSE").
Pure Gold Mining Inc.
Admission to Trading on the London Stock Exchange
VANCOUVER, B.C. - Pure Gold Mining Inc. (PGM: TSX-V) ("Pure
Gold" or the "Company"), a Canadian focused gold development
company that owns the high-grade Madsen Red Lake Gold Mine
("Madsen" or the "Project") in Red Lake, Ontario, is pleased to
announce that at 08:00am BST today, its common shares will be
admitted to the standard listing segment of the Official List and
the LSE's Main Market for listed securities ("Admission") under the
ticker PUR.
Admission follows the publication of the Company's Prospectus on
14 May 2019, a copy of which is available on the Company's website
(http://puregoldmining.ca/investors/LSE-Listing), the National
Storage Mechanism (www.morningstar.co.uk/uk/NSM) and under the
Company's Sedar profile (www.sedar.com). Hard copies of the
Prospectus will also be available during normal business hours at
the offices of the Company's English legal advisers, Memery Crystal
LLP, at 165 Fleet Street, London EC4A 2DY.
Darin Labrenz, President and CEO of Pure Gold, commented:
"Today marks an important new chapter for the Company as we
commence trading on the London Stock Exchange alongside our
existing listing in Toronto. The LSE listing is a global platform
which allows us to introduce Pure Gold to European and UK investors
as we approach construction of our high-grade Madsen Red Lake Gold
Mine and first production targeted for next year.
Due to the very high grade nature of the ore body, the low
capital cost, short 13-month construction period, and project
location in Ontario, Canada, we have already had good interest
shown by European investors. We look forward to broadening our
shareholder register as we approach our first phase of production
and unlock the wider deposits in our licence area within the iconic
Red Lake mining district, home of Canada's highest grade gold
deposits."
Pure Gold is a Canadian focused gold developer. It has recently
released the feasibility study for its flagship project, the Madsen
Red Lake Gold Mine, which outlines an 800 tonne per day underground
mining operation with a 12 year life-of-mine ("LOM"), Probable
Reserves of one million ounces at 9 g/t Au in 3.5 million tonnes,
and a comparatively low initial capital cost of C$95 million (US$71
million). The Company is targeting H2 2020 for first production. In
addition, specific exploration targets and satellite resources not
considered in the feasibility study suggest an opportunity for
near-term growth to potentially further enhance the economics of
the project. A recently completed preliminary economic assessment
("PEA") of these discoveries highlights the tremendous prospective
upside present at Madsen Red Lake Mine, and demonstrates how Pure
Gold would phase these new discoveries into future mine plans.
Key Highlights:
Madsen Red Lake Feasibility Study:(1)
Base case parameters assume a gold price of US$1,275/oz and an
exchange rate (C$ to US$) of 0.75.
-- Current Probable Reserves at the Madsen Red Lake Gold Mine
are 1 million ounces of gold at an average grade of 9 g/t gold
contained within 3.5 million tonnes;
-- Modest initial capital requirement of C$95 million including
a C$8 million contingency with access to significant existing
infrastructure including underground development and plant
infrastructure;
-- Short 13-month pre-production period from a formal decision to mine;
-- Peak annual production of approximately 125,000 ounces with
average annual gold production in years 3 through 7 of
approximately 102,000 ounces;
-- LOM direct operating cash cost estimated at US$607 per ounce of gold recovered;
-- LOM all in sustaining cash cost ("AISC") estimated at US$787 per ounce of gold recovered;
-- Pre-tax NPV5% and IRR of C$353 million and 43% respectively
with a 3.0 year payback of initial capital; and
-- After-tax NPV5% and IRR of C$247 million and 36% respectively
with a 3.4 year payback of initial capital.
Preliminary Economic Assessment for Fork, Russet South, and
Wedge deposits: (1)
Base case parameters assume a gold price of US$1,275/oz and an
exchange rate (C$ to US$) of 0.75.
-- Initial capital requirement of C$57 million including a 14% contingency;
-- LOM direct operating cash cost estimated at US$557 per oz of payable gold;
-- LOM AISC estimated at US$712 per oz of payable gold;
-- Mine life extension of 3.7 years with total production from
the Fork, Russet South and Wedge deposits of 210,000 ounces of
gold;
-- Pre-tax NPV5% and IRR of C$79 million and 57% respectively
with a 1.6-year payback of initial capital; and
-- After-tax NPV5% and IRR of C$51 million and 39% respectively
with a 2.0-year payback of initial capital.
The PEA is preliminary in nature and includes inferred mineral
resources that are too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that PEA
results will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
The Company's London Investor Presentation is now available on
its website.
Velocity Trade Limited and Tamesis Partners LLP are acting as
financial advisers to the Company and Memery Crystal LLP are as
acting as English legal advisers.
-S-
Enquiries:
http://puregoldmining.ca/
Pure Gold Mining Inc. +1 604 646 8000
Adam Buchanan, Investor Relations
PUBLIC RELATIONS
Tavistock +44 (0) 207 920 3150
Jos Simson
Gareth Tredway
Annabel de Morgan
FINANCIAL ADVISERS
Velocity Trade Capital Limited +1 (416) 323 2153
Rusty Bell
Daniel Belchers
Tamesis Partners LLP
Richard Greenfield +44 (0) 203 882 2868
Non-GAAP Measures and Other Financial Measures
Alternative performance measures are furnished to provide
additional information. These non-GAAP performance measures are
included in this news release because these statistics are key
performance measures that management uses to monitor performance,
to assess how the Company is performing and to plan and assess the
overall effectiveness and efficiency of mining operations. These
performance measures do not have a standard meaning within
International Financial Reporting Standards ("IFRS") and,
therefore, amounts presented may not be comparable to similar data
presented by other mining companies. These performance measures
should not be considered in isolation as a substitute for measures
of performance in accordance with IFRS.
1. See the National Instrument 43-101 technical report entitled
"Madsen Gold Project Technical Report Feasibility Study for the
Madsen Deposit and Preliminary Economic Assessment for the Fork,
Russet South and Wedge Deposits Red Lake, Ontario, Canada" with an
effective date of February 5, 2019 for complete details, available
on the Company's website at www.puregoldmining.ca or Sedar profile
at www.sedar.com.
About Pure Gold Mining Inc.
Pure Gold is a Canadian focused gold developer. It has recently
released the feasibility study for its flagship project, the Madsen
Red Lake Gold Mine, which outlines a 12 year LOM, current probable
reserves of one million ounces at 9 g/t Au in 3.5 million tonnes,
800 tonne per day underground mining operation with comparatively
low initial capital cost of C$95 million and strong financial
performance with an after-tax NPV5% of C$247 million and an
after-tax internal rate of return of 36%. In addition, specific
exploration targets and satellite resources not considered in the
feasibility study suggest an opportunity for near-term growth to
potentially further enhance the economics of the project.
Highlighting the scalability of the project, the Company also
announced the results of a preliminary economic assessment for its
Fork, Russet South, and Wedge deposits that demonstrate the
potential to add approximately C$51 million to the Madsen Red Lake
Gold Mine after-tax NPV5%. As a result of high gold grades, near
surface resources, and use of existing infrastructure, mining of
these zones will yield an after-tax internal rate of return of
39%.
Multiple high-grade gold discoveries and the infrastructure are
in place to allow for the potential to turn those discoveries into
mineable deposits on a short timeline which has attracted a highly
passionate, skilled and experienced team. Our board, management,
and technical team all have extensive experience in gold
exploration and mining across the world. Perhaps more
significantly, they have deep roots in Red Lake - and a rich and
intimate knowledge acquired during their years mining and exploring
in the area.
More than 29 million ounces of high-grade gold have been mined
in the legendary Red Lake mining district of north western Ontario,
making this one of the largest gold producing districts in Canada.
As a multi-generational asset, the Madsen Red Lake Gold Mine
represents the future of this prolific gold district. With near
term production from a robust feasibility mine plan, and a
potential second phase of growth highlighted by our recent PEA, the
Madsen-Red Lake orebody is an exceptional foundation on which to
build Canada's next iconic gold mining company.
Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations for the Company,
is the designated Qualified Person for this news release within the
meaning of National Instrument 43-101 ("NI 43-101") and has
reviewed and verified that the technical information contained
herein is accurate and approves of the written disclosure of
same.
Forward-looking statements
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
Pure Gold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address potential quantity and/or grade of minerals, potential size
and expansion of a mineralized zone, proposed timing of exploration
and development plans, the growth potential of the Madsen Gold Mine
and opportunities for scalability, the potential to increase
after-tax net present value to the Madsen Gold Mine, the potential
for Russet South, Fork and Wedge to be economically viable, planned
mining methods, mineral processing and sources of power, expected
annual production, potential profitability of the Madsen Gold Mine
at lower metal prices, expected capital costs, expected IRR,
anticipated permitting requirements and timing thereof, expected
development schedule, expected timing of the completion of the
Preliminary Economic Assessment for the Russet South, Fork and
Wedge deposits, potential conversion of inferred resources to
measured and indicated resources, potential extension and expansion
of mineral resources and the focus of the Company in the coming
months . 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 Pure Gold 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
interpretation of results at the Madsen Gold Mine; changes in
project parameters as plans continue to be refined; 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 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 June 11, 2018 in the section
entitled "Risk Factors", under Pure Gold's SEDAR profile at
www.sedar.com.
Although Pure Gold 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. Pure Gold 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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