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VANCOUVER, British Columbia, October 31, 2022 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. PGMPURE)) (“PureGold” or the “Company”) announces that it has filed for an injunction for bankruptcy protection (the “Injunction”) with the Supreme Court of British Columbia (the “Court”) Law on the regulation of company creditors (the “CCAA”).
After carefully considering PureGold’s cash position, proposed debt payments, projected income and expenses, all available alternatives to filing for bankruptcy protection, and after thorough consultation with legal and financial advisors, the Company’s Board of Directors has determined that it is in the best interests of PureGold and all of its stakeholders to file for bankruptcy protection under the CCAA.
The injunction requested today includes, among other things: (i) a stay of creditors’ claims and proceedings in favor of PureGold; (ii) Approving PureGold to borrow under an interim financing facility (the “Borrowing Facility”) from its lending partner, Sprott Private Resource Lending II (Collector) LP, to meet the Company’s immediate liquidity needs, including the maintenance of its property and other assets; and (iii) the appointment of KSV Restructuring Inc. as PureGold’s court-appointed monitor (in such capacity, the “Monitor”). While under bankruptcy protection, PureGold will consider all available transaction and reorganization options with the goal of maximizing value to the Company and its stakeholders.
Upon receipt of the initial order, the Company anticipates that the PureGold mine will continue to be serviced and maintained. PureGold management is expected to remain responsible for day-to-day operations under the overall supervision of the Monitor. Information on PureGold’s CCAA process can be found on the monitor’s website at:
