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Pure Gold nets $15 million to continue Red Lake drilling

Mine developer believes gold properties has multiple discovery potential
Pure-Gold-Madsen_Cropped
(Pure Gold Mining photo)

Vancouver's Pure Gold Mining has raised $15 million in flow-through shares to continue exploration while the developer builds Red Lake's next mine.

“This new capital gives us the financial flexibility to launch an aggressive exploration drilling campaign designed to accelerate our goal of resource growth and expansion," said company president Darin Labrenz in a news release.

"While we remain completely focused on our fully funded mine construction and ramp-up, we strongly believe our mine plan is both scalable and has the potential to expand."

In the mix is noted mining financier Eric Sprott, who bumped up his share ownership in Pure Gold to 12 per cent.

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The company said the mine project is fully funded and on track for first production to pour its first gold bar at Red Lake by the fourth quarter of this year.

Pure Gold's 47-square-kilometre property, just southwest of the community of Red Lake, is the site of two former gold mines with historical production of 2.6 million ounces of gold.

The company claims the property shows the potential for more gold discoveries in the near term. The ore body is strung out over a seven-kilometre-long gold system that the company continues along strike and deeper down.