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Pure Gold aims to list on the LSE main market

Published by , Assistant Editor
Global Mining Review,

Pure Gold Mining Inc. (Pure Gold), a Canadian focused gold development company that owns the high-grade Madsen gold project (Madsen) in Red Lake, Ontario, is pleased to announce its intention to seek a dual listing of the company’s shares on the Standard Segment of the Main Market of the London Stock Exchange (LSE).

The Madsen gold project is a precious metals resource project located in the Red Lake district of Northwestern Ontario (Canada), an established mining jurisdiction where more than 29 million oz (Moz) of gold has been produced to date from 28 historical mines at an average recovered grade of 15.6 g/t Au. The project is centred around the historical Madsen mine, which produced 2.5 million oz of gold at an average grade of 9.7 g/t gold between 1938 and 1976 and again from 1997 to 1999.


Pure Gold, currently listed on the TSX Venture Exchange, recently released a technical report (Technical Report), containing the results of a feasibility study on the Project which highlighted a robust 12 year underground mining operation with a comparatively low initial capital cost of CAN$95 million (US$71 million) and strong financial performance with an after-tax net present value (NPV 5%) of CAN$247 million (US$185 million) and an after-tax internal rate of return (IRR) of 36%, using a gold price of US$1275/oz.


In addition, several related discoveries on the project, including the Fork, Russet South and Wedge deposits, suggest an opportunity to potentially further enhance the Project’s economics. The Technical Report also included the results of a Preliminary Economic Assessment (PEA) on these deposits, representing the first conceptual expansion scenario for the future phased growth of the Madsen Gold Project. The PEA demonstrates the potential of these deposits to add C$51 million (US$38 million) to the Madsen Project after-tax NPV 5% at an IRR of 39%.


Admission to trading on the LSE is expected in 2Q19. The company is not currently intending to raise capital in conjunction with Admission. Velocity Trade Capital Ltd (VT Capital) and Tamesis Partners LLP are acting as advisers to the company.


Darin Labrenz, President and CEO of Pure Gold, commented: “We are pleased to be bringing Pure Gold Mining and our high-grade Madsen Gold Project to the London Stock Exchange ahead of our near-term transition to gold production. Madsen is located in Red Lake Ontario, the heart and home of Canada’s high-grade gold mining district that to date has produced 29 million oz of gold at an average grade of 15.6 g/t gold, making it one of the world’s highest grade gold regions. The London market is known for its deep knowledge of the mining sector and as an investment destination for institutional capital from around the world. Our dual listing will increase the company’s international profile, and facilitate improved access to UK and international gold-focused institutional investors that are attracted to an asset that boasts a 1 million oz reserve at a high-grade of approximately 9 g/t with a short 13 month construction period to production at a capital cost of CAN$95 million.  We look forward to the higher profile that comes with a London listing and rapidly advancing our Madsen gold project to become Canada’s next gold mine.”

Senior management team with extensive operational experience


The company’s board, management, and technical team all have extensive experience in gold exploration, development and production across the world. Significantly, they have deep roots in Red Lake – and a rich and intimate knowledge of the region acquired during their years mining and exploring in the area.


Engagement of Tavistock Communications


Pure Gold has also appointed Tavistock Communications Limited (Tavistock) to provide financial public relations and investor relations services in the UK.  The appointment of Tavistock supports the company’s communications strategy of building awareness of the company in the UK and to international audiences and communicating with all its stakeholders.


Tavistock does not have any interest, directly or directly in Pure Gold Mining or its securities nor any right to acquire such an interest. Pursuant to the terms of the company’s agreement with Tavistock, Tavistock will be responsible for a variety of financial public relations and investor relations activities, including development of the company's communications strategy, dissemination of corporate information, presentations to and communications with brokers, analysts and investors, and handling shareholder enquiries regarding the company in the UK.


In consideration of the services to be provided, the monthly fees incurred by Pure Gold will be cash consideration of up to £5000.

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