RED LAKE – BUSINESS – Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”) announces that it has obtained 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”). KSV Restructuring Inc. was appointed as the monitor (the “Monitor”).
The decision to commence CCAA proceedings was made after careful consideration of PureGold’s cash position, scheduled debt payments, forecast revenue and expenses and all available alternatives to an application for creditor protection. The CCAA proceedings are intended to facilitate a restructuring of the Company’s balance sheet, the injection of additional capital, a sale of the company or its assets, or any combination thereof.
Among other things, the Initial Order authorizes PureGold to borrow under an interim financing credit facility from its lending partner, Sprott Private Resource Lending II (Collector) LP, in order to meet the Company’s immediate cash needs for the continuation of its business activities and preservation of its property. 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.
The Monitor has set up a website at: https://www.ksvadvisory.com/experience/case/pure-gold-, where updates on the restructuring process, the Monitor’s reports to the Court, Court orders and other information will be posted as soon as they are available.