IKN

Win us with honest trifles

UPDATED: Bury-The-Real-News-At-The-End-Of-The-NR update, Pure Gold (PGM.v) edition

It’s a looong one too, but keep scrolling and you get there eventually. Here you go:

At the date of this news release, the Company’s cash balance is approximately $9 million. The Company expects it will need to seek additional financing in the next 30 days to fund operations and to service the interest on its debt. The Company is working collaboratively with its lending partner, Sprott Private Resource Lending II (Collector), LP (“Sprott”), and with its financial and legal advisors to explore a variety of potential financing solutions. If such additional financing is not received in the short term, PureGold will not be able to meet its obligations as they become due resulting in a default under its debt obligations.

The Company expects that, in total, over the next six months, it will require approximately $50 million of external financing to bring the Company to a state of sustainable positive free cash flow at the corporate level. Assuming the required capital can be secured, the Company expects to achieve sustainable positive free cash flow by the end of 2022. This external financing could take a variety of forms including debt or equity and may include proceeds from option or warrant exercises. The Company is currently evaluating several financing alternatives and will provide a further update when such information is available.

UPDATE: It appears that this humble corner of cyberspace wasn’t the only to notice the buried lede:

Ouch.

6 Comments

    Damn those pesky resources….
    They’re just too high-grade to be mined, why mine 8.9 g/t Au when you can mine 4.8 g/t Au

    Must be the dilution….

    Reply

    Same group as discovery silver. Of course different managment team. Worried about DSV your position or not?

    Reply

    Seems like the goods might not be there?

    Reply
    A Beaten Down Prospectors Cabin In The Woods The Deep Dark Woods of British Columbia 30/03/22 12:40 pm

    I’m sure Slick Rick will lend them the money in exchange for deeply discounted shares and some nice juicy warrants he can dump onto retail

    Reply

    […] then, the dumpage has been relentless. At the time of the NR, this humble corner of cyberspace wrote that PGM was deliberately burying the real news at the bottom of the NR but with hindsight, that may be a precipitous and incorrect […]

    Reply

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