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AngloGold Ashanti ups stake in Pure Gold

Exploration drilling along the PureGold trend Credit: Pure Gold Mining

AngloGold Ashanti (NYSE: AU) has invested an additional C$5 million and increased its ownership to 16% in Pure Gold (TSX-V: PGM).

The company has exercised 5,036,250 share purchase warrants with a strike price of C$0.85.

“Anglogold Ashanti have once again demonstrated their strong support of PureGold as we complete construction and prepare for first gold pour at our PureGold mine,” Pure Gold president and CEO Darin Labrenz said in a media release.

With approximately C$120 million available in funding, and C$72 million remaining on capital expenditure, PureGold is in a solid financial position to complete the mine construction in Red Lake, the company said.

The Pure Gold mine in Ontario is the highest grade development stage gold deposit in Canada today, the company said, and will be an 800 t/d underground operation with a 12-year mine life.

Probable reserves at the site are at 3.5 million tonnes grading 9 g/t gold, for a total of 1 million oz. Mineral reserves are reported using cut-off grades between 4 g/t gold and 4.75 g/t gold. The PureGold property covers 47 sq. km and features a 7-km long gold system that remains open.

Tuesday morning, PureGold’s stock was up 3.45% on the TSXV. The company has a C$808 million market capitalization.