Pure Gold Mining Inc. reported on progress of the ramp-up at its PureGold mine and significant milestones achieved as of the end of the first quarter of 2021. Since late January, the milling facility at the PureGold Mine has been operating at greater than 75% of nameplate capacity, including multiple consecutive days at greater than 800 tons per day (t/d) and a peak daily throughput of 897 t/d. Gold recoveries have been exceptional and consistent throughout the ramp-up period, averaging 95%, in line with expectations. With the milling facility now fully ramped up, the company’s focus will shift to aligning the mill throughput with the rate of ore production from underground as the mine continues to access higher grade ore and progress toward steady state production.
Pursuant to the terms of the amendment, the original credit agreement dated August 2019 will be amended to provide for an increase to the aggregate principal amount of debt of up to $20 million, with $12.5 million to be available to the company upon closing and the remainder to be available upon satisfaction of certain conditions. The amendment will also provide for the deferral of cash interest payments until June 30. The company will pay to Sprott an amount equal to 4% of the additional debt made available to the company, payable in shares.
“We are pleased by the progress of the ramp-up of the PureGold mine to date, highlighted by the milling facilities achieving design capacity prior to quarter end. With the mill ramp-up effectively complete, we can now focus our attention solely on ramping up the mine and accessing high grade ore from multiple declines where we are making great progress,” PureGold President and CEO Darin Labrenz said. “The additional $12.5 million will ensure the PureGold mine continues its ramp-up phase with maximum financial flexibility, whilst the remaining $7.5 million can be accessed if needed to provide additional liquidity. The term and repayment schedule matches our expected grade and production growth over the coming years as we get into the heart of the orebody and continue to execute on our organic growth strategy.”