PureGold Suspends Operations

Citing a cash balance of $2 million and a net working capital deficit of approximately $13 million, PureGold Mining announced that it is suspending operations and placing the PureGold mine, located in Red Lake, Ontario, Canada, on care and maintenance immediately. The company said the mine has failed to achieve consistent positive site-level cash flow, notwithstanding recent reductions in operating costs and sequential quarter over quarter increases in production.

If additional outside financing is not obtained in the short term, PureGold will not be able to meet its obligations as they become due, resulting in a default under its debt obligations. The company said it continues to work collaboratively with its lender, a fund managed by Sprott Resource Lending Corp., to evaluate several near-term funding and strategic alternatives. This process will include evaluation of all available options, including possible sale or restructuring scenarios.

As featured in Womp 2022 Vol 11 - www.womp-int.com