Pure Gold Mining has cashed up to launch an "aggressive exploration program" in and around their Red Lake mine construction project.
Just days after mining financier Eric Sprott demonstrated his support for the northwestern Ontario project with $15 million in financing, Vancouver-based Pure Gold announced they've raised an additional $12.3 million from the exercise of share purchase warrants.
In a May 26 news release, Pure Gold now has accumulated $150 million to kick off a major drilling campaign on June 3 and spend the remaining $86 million needed to finish construction toward bringing the former Madsen Mine property back into production later this year.
The focus of their exploration is to better define gold mineralization in areas of the mine being targeted for early production. At the same time, they're following up on new high-grade discoveries found near the surface and at depth on their 47-square-kilometre property, southwest of the town of Red Lake.
In the release, the company said they're in a unique financial position to accelerate exploration plans without impacting the mine construction's capital budget.
The orebody on their property contains a seven-kilometre-long gold system that the company said is open-ended for more discoveries both at surface and deeper down.
At 9 grams per tonne, Pure Gold said they have one the world's highest-grade gold mines. The first gold pour takes place in the fourth quarter of this year
“The past week has bolstered our balance sheet and added depth to our shareholder base." said Pure Gold president-CEO Darin Labrenz in the release.
"Having only scratched the surface across our seven-plus-kilometre-long high-grade gold system, we are taking measures to expedite our growth plan. New funds will be earmarked for aggressive exploration work that will fast track discovery and resource development in a phased approach to realizing the true potential of our scalable Pure Gold mine.”