Win us with honest trifles

Pure Gold (PGM.v) buys (a little) time

The terms of the deal announced by Pure Gold (PGM.v) today is less financing, more stay of execution. For the princely sum of U$6m (plus two extra weeks before its debt defaults) Sprott Private Lending gets the $6m secured, first priority and also insists on a U$5m dilutive placement that has to close in less than a month’s time. Not exactly betting the farm.

But even then, the cash is clearly papering over the fissures as we know PGM wanted $50m to turn its ops around by the end of this year. The new deal has an air of cracking the whip on that and has 3q22 as the new target for turnaround, but there’s no doubt PGM needs more cash than this U$11m. Meanwhile, Mark O’Dea will not be available for webinars and conferences at his other companies, he’s been asked to do a few weeks of work for a change as Troy Fierro has left the company due to illness…he’s sick of the company.

More interesting, however, is the roaring silence out of AngloGold Ashanti. They must be seriously annoyed at being played for the last placement and refused to stump up any more. Anglo is now the most likely saviour of Madsen on the other side of Chapter 11.


    Sprott steals value or anything else not bolted down.


      Sprott Lending makes its money by being the place to go when you’ve been refused by others. If you walk into an office famous for being hardball capitalist, you cannot complain afterwards about being hardballed for your capital.

      As Michael said, It’s nothing personal. Strictly business.


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