/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, May 18, 2023
/CNW/ - Pure Gold Mining Inc. (NEX: PGM.H) (the "Company")
announces that further to its news release dated April 17, 2023 it has entered into a Share
Purchase Agreement with West Red Lake Gold Mines Ltd.
("West Red Lake" or
"WRLG") and a fund managed by Sprott Resource Lending Corp.,
whereby WRLG will acquire all of the issued and outstanding shares
of the Company (the "Acquisition"). Details of the
Acquisition can be found in the Company's April 17, 2023 news release, which is available
on SEDAR.
Closing of the Acquisition is subject to various conditions
precedent including receipt of all required regulatory approvals,
including the approval of the TSX Venture Exchange, and receipt of
an "Approval and Reverse Vesting Order" from the Supreme Court of
British Columbia (the
"Court") in the Company's ongoing proceedings pursuant to
the Companies' Creditors Arrangement Act (the "CCAA
Proceedings"). The Court hearing for approval of the
Acquisition is currently scheduled for May
29, 2023.
Further information with respect to the CCAA Proceedings is
available on the website of the Company's Court-appointed Monitor,
KSV Restructuring Inc., at:
https://www.ksvadvisory.com/experience/case/pure-gold (the
"Monitor's Website"). Copies of all Court materials filed
with respect to approval of the Acquisition will also be posted to
the Monitor's Website.
About Pure Gold Mining Inc.
The Company is a Canadian gold mining company with a mine (the
"Mine") located in Red Lake,
Ontario, Canada. The Company owns and operates the Company's
Mine, which began gold production in 2021 after the successful
construction of an 800 tpd underground mine and processing
facility. The Company's Mine is centered on a forty-seven square
kilometre property with significant discovery potential.
Additional information about the Company and its activities may
be found on the Company's website
at www.puregoldmining.ca and under the Company's
profile at www.sedar.com
ON BEHALF OF THE COMPANY
"Jonathan Singh"
Jonathan Singh, Chief
Administrative Officer
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 the Company within the meaning of applicable
securities laws, including, but not limited to statements relating
to the expected timing and completion of the Acquisition, the
receipt of the reverse vesting order from the Court and the receipt
of all necessary approvals including WRLG shareholder and TSX
Venture Exchange approval. 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
the Company 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 CCAA
Proceedings and the impact of the same on the Company's operations;
securing financing or undertaking a restructuring transaction and
the timing thereof; 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 and development 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 March 30, 2022 in the section
entitled "Risk Factors", under the Company's SEDAR profile at
www.sedar.com.
Although the Company 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. The Company 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.
SOURCE Pure Gold Mining Inc.