October 31, 2022

Filing Type:

Company Counsel: Blakes

Trustee: KSV

Trustee Counsel: Fasken

Industry:

Province:

Pure Gold Mining Inc. (TSXV:PGM), a British Columbia mining company whose principal business is the operation of a mine located in Red Lake, Ontario, obtained CCAA protection on October 31. The company has recently placed the mine on care and maintenance and significantly reduced its workforce from 285 to 54 employees. Notwithstanding steps taken by the company to significantly reduce costs and address operational inefficiencies, it was facing an imminent and significant liquidity crisis. Its current cash balance is approximately $260,000 and, as of September 30, 2022, its net working capital deficit was approximately $13 million, excluding current amounts owing on the company’s debt facilities with Sprott Private Resource Lending II. The company projects that it requires approximately $3 million to $4 million per month to keep the mine on care and maintenance and to fund the costs of the CCAA proceedings. Absent the filing, the company would not have had the liquidity required to fund its immediate operational needs, including payroll for employees critical to mine maintenance and preservation. KSV was appointed as monitor. Counsel is Blakes for the company, Fasken for the monitor, DLA Piper for Sprott and KND Complex Litigation for Linda Larouche.

By Dina Milivojevic