NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, March 17, 2023 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. (NEX:PGM.H) (“PureGold” or the “Company”) announces today the departures of Mark O’Dea, President & CEO; Phil Smerchanski, VP Exploration & Technical Services; Chris Lee, Chief Geoscientist; and Adrian O’Brien, Director Marketing and Communications, effective immediately. The Company also announces the departures of Chris Haubrich, VP Business Development & CFO and Ashley Kates, VP Finance & Corporate Secretary, effective March 31, 2023.
The above noted departures are taking place in consultation with the Company’s senior lender, a fund managed by Sprott Resource Lending Corp. (“Sprott”) and the court appointed Monitor in the ongoing Companies’ Creditors Arrangement Act (“CCAA”) proceedings, KSV Restructuring Inc. (“KSV”). The departures are being made in connection with an application scheduled to be heard on March 30, 2023 in the ongoing CCAA proceedings in which the Company will be seeking to appoint a Chief Administrative Officer (“CAO”). Mr. Haubrich, Ms. Kates, and Mr. Smerchanski have agreed to continue to provide support beyond their termination dates to the Company in a consulting capacity, as needed. The members of the Board of Directors have each indicated an intention to resign after the court appointment of the CAO.
The Company’s PureGold Mine near Red Lake, Ontario remains in a state of care and maintenance and is expected to remain in such state for the foreseeable future as part of the ongoing CCAA proceedings. On March 7, 2023, the CCAA stay of proceedings was extended to May 12, 2023 and an additional US$5 million in authorized borrowings was approved. The Mine remains staffed with a full-time workforce of approximately 40 employees who are focused on care and maintenance activities and preserving the value of the asset. PureGold continues to engage in discussions with Sprott and interested third parties concerning a possible transaction.
The Company would like to thank Mark, Phil, Chris, Adrian, Chris, and Ashley for their leadership, dedication, and commitment and wishes them all the very best in their future endeavours.
About Pure Gold Mining Inc.
The Company is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The Company owns the PureGold 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 BOARD
Graeme Currie, Chairman
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 departure of certain employees, the efforts to preserve the value of the PureGold Mine while in care and maintenance, and the timing of a potential transaction. 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, 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.