KENORA, ONT. — Pure Gold Mining has announced an update of financing for its Red Lake Mine Project in northern Ontario with resources secured to complete construction of the mine this year and undertake further exploration.
On closing of a recently announced private placement, Pure Gold will have approximately $101 million in cash, along with $US35 million available in an undrawn credit facility, stated a May 26 release.
The miner now has approximately $150 million available in funding and $86 million remaining on capital expenditure to complete the mine construction.
The mine will be located in an orebody situated within a seven-kilometre-long gold system 200 kilometres north of Kenora, Ont.
Major earthworks, road and utilities infrastructure upgrades and equipment installation are currently underway on surface at the site.
Detailed engineering in the process plant is 95 per cent complete.
Underground development is proceeding ahead of schedule.
The miner said the project is on track to deliver first production in late 2020 despite issues related to COVID-19.
Minor delays were encountered while engineers and vendors transitioned to working remotely because of the pandemic.
Operations at the site have been adapted to minimize the risk of virus transmission through new screening, sanitary, hygiene and physical distancing procedures, noted the release.