Pure Gold Mining Inc (LRTNF)

[Bridget21]

Will they survive?

March 28 - News:

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.