Welcome!

News Feed Item

Pure Gold Reports Year-End Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/04/14 -- Pure Gold Mining Inc. (formerly Laurentian Goldfields Ltd.) (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce its financial results and company highlights for the year ended March 31, 2014 and provide an update on company activities at its key project in Canada.

"It has been a transformative year" stated Darin Labrenz, Pure Gold President & CEO. "With the acquisition and consolidation of the Madsen Gold Project the Company has acquired one of the largest prospective land positions in the historic Red Lake, Ontario, mining camp. We have assembled a team with extensive knowledge of Red Lake and have the financial strength to prioritize and advance several priority high grade gold targets on the property."

Financial and operational highlights through and subsequent to year end:


--  On March 4, 2014, the Company completed a private placement of
    74,326,500 units (the "Units") at a price of $0.25 per Unit for
    aggregate gross proceeds of $18.6 million. Each Unit consisted of one
    common share and one-half common share purchase warrant with each whole
    warrant entitling the holder to acquire one additional common share at a
    price of $0.50, until September 4, 2016. 
    
--  On March 4, 2014, the Company completed the acquisition of the Madsen
    Gold Project from Claude Resources Inc. ("Claude"). Proceeds consisted
    of $6.25 million in cash, 9,776,885 common shares of the Company with a
    deemed value of $2.1 million plus a further $2.5 million in cash or
    shares (at the Company's option) due to Claude on September 4, 2014. 
    
    Located near Red Lake, Ontario, Canada, the property is host to two
    past-producing mines, existing mine infrastructure, an Indicated mineral
    resource of 928,000 ounces gold in 3.24 million tonnes grading 8.93 g/t
    gold and an Inferred mineral resource of 297,000 ounces gold in 0.79
    million tonnes grading 11.74 g/t gold.(1) 
    
    The Madsen Gold Project contains numerous other gold zones that
    currently do not have defined mineral resources. These include but are
    not limited to; Starratt-Olsen, Buffalo, Treasure Box, Fork Zone, and
    Russett South. In the Company's Technical Report SRK recommends a C$6.3
    million work program to investigate the mineral resource potential of
    these zones and the potential to expand the current Mineral Resource. A
    near term focus of Pure Gold will be to apply a new and consistent
    exploration model to advance many of these exploration targets,
    including desktop evaluation to prioritize and better define targets.
    Pure Gold will also focus its exploration efforts on developing
    additional targets along the 12 km-long Madsen Mine Trend prior to
    initiating a drill program in summer 2014.
    
    
--  The Company strengthened its Board with the addition of Dr. Mark O'Dea,
    Mr. Graeme Currie, Mr. Lenard Boggio, Mr. Rob Pease and Mr. Troy Fierro.
    These highly respected members of the mining industry bring experience
    in geology, mine finance, business development, accounting, corporate
    governance and mine development to the Company. The Company also
    strengthened its management team with the addition of Mr. Darren
    O'Brien, P. Geo, as VP, Exploration and Mr. Sean Tetzlaff, CPA, CA as
    CFO. 
    
--  On June 24, 2014, the Company completed a transaction to acquire a 100%
    interest in the Newman-Madsen Property from Sabina Gold & Silver Corp.
    ("Sabina"). The Newman-Madsen Property consists of 38 patented mining
    claims and is adjacent to Pure Gold's Madsen Gold Project in the
    prolific Red Lake gold camp. On closing, Pure Gold issued 6,500,000
    common shares to Sabina. 
    
    With this acquisition, Pure Gold now controls over 5,000 hectares of
    mineral rights on predominantly patented mining claims with increased
    exposure to prospective horizons along the 12 kilometre Madsen Mine
    Trend. 

(1) Unless stated otherwise, information of a scientific or technical nature in this press release regarding the Madsen Gold Project is summarized, derived or extracted from, the following National Instrument 43-101 Technical Report entitled "Technical Report for the Madsen Gold Project, Red Lake, Ontario, Canada" with an effective date of February 18, 2014. The Technical Report was prepared by Dr. Lars Weiershauser, PhD, P.Geo and Mr. Glen Cole, P.Geo of SRK Consulting (Canada) Inc. (or "SRK"); independent qualified persons as defined by National Instrument 43-101. For further detail on the Madsen Gold Project, refer to the technical report filed on the Company's website at www.puregoldmining.ca or under Pure Gold's SEDAR profile at www.sedar.com.

SELECTED FINANCIAL DATA

The following selected financial data is derived from our consolidated financial statements for the years ended March 31, 2014, 2013 and 2012, as prepared in accordance with International Financial Reporting Standards. All dollar figures are expressed in Canadian $.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             Twelve months ended            
                                                   March 31                 
                                           2014          2013          2012 
----------------------------------------------------------------------------
Loss and comprehensive loss for                                             
 the year                           ($1,098,112)  ($1,657,747)  ($3,475,960)
Basic and diluted loss per share         ($0.07)       ($0.24)       ($0.58)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                           As at            
                                                    March 31,      March 31,
                                                         2014           2013
----------------------------------------------------------------------------
Cash and short-term investments                    $9,026,899       $465,606
Restricted cash                                      $104,224         $2,075
Working capital                                    $6,139,719       $407,419
Total assets                                      $25,239,751       $868,522
Current liabilities                                $3,191,633       $121,427
Non-current liabilities                            $2,320,238            $--
Shareholders' equity                              $19,727,880       $747,095
----------------------------------------------------------------------------

For the year ended March 31, 2014, the Company incurred a loss of $1.1 million compared to a loss of $1.7 million for fiscal 2013.

The most significant contributors to the loss for the year ended March 31, 2014 was (i) wages and consulting fees of $0.4 million, (ii) office expenditures of $0.1 million, (iii) professional fees of $68,275, (iv) exploration and evaluation expenditures of $0.2 million and (v) an impairment of exploration and evaluation assets of $0.3 million. Expenses for the year ended March 31, 2014 were offset by other income of $54,284.

Wages and consulting fees decreased by $0.1 million from $0.5 million for the year ended March 31, 2013 to $0.4 million for the year ended March 31, 2014. The change was largely due to a general decrease in payroll and consulting fees as the Company scaled down its administrative costs prior to the acquisition of the Madsen Gold Project. In addition, the Company allocated certain of its resources to the Antofagasta Alliance due to a temporary shift in focus.

Share based compensation expense decreased by $91,461 from $91,746 for the year ended March 31, 2013 to $285 for the year ended March 31, 2014. During the year ended March 31, 2013, the Company granted 500,000 incentive stock options to directors, officers and employees of which 470,000 vested immediately and the remaining 30,000 were subject to vesting provisions. Therefore a significant portion of the fair value assigned to these incentive stock options was recognized during the year ended March 31, 2013. The Company did not grant any incentive stock options during the year ended March 31, 2014.

Exploration and evaluation expenditures remained consistent during the year ended March 31, 2014 in comparison to the year ended March 31, 2013. During the year ended March 31, 2014, the majority of exploration and evaluation expenditures related to the evaluation and compilation of historical data on the Madsen Gold Project. During the year ended March 31, 2013, the majority of exploration and evaluation expenditures related to exploration expenditures incurred on its Van Horne property.

During the year ended March 31, 2014, the Company wrote down $0.3 million, being the remaining value of deferred acquisition costs relating to its Van Horne property, resulting from a review and prioritisation of the Company's portfolio of mineral property assets. During the year ended March 31, 2013, the Company wrote down $0.7 million, being the value of deferred acquisition costs relating to its Maze Lake, Thundercloud and Van Horne properties. This write-down resulted from the Company terminating its option agreements for the Thundercloud property and a portion of the Van Horne property as well as the transfer of all its legal and beneficial interest in the Maze Lake property to its joint arrangement partner.

Going forward, Pure Gold expects an increase in general and administrative costs and exploration expenses as activity levels ramp up to exploring Madsen, and the Company adds technical and administrative staff to meet its day to day staffing requirements arising from the increased activity.

Total assets increased significantly to $25.2 million at March 31, 2014 compared to $0.9 million at March 31, 2013. The increase is directly attributable to the $18.5 million private placement and the acquisition of the Madsen Gold Project. The increase to total assets was offset by $0.4 million incurred in operating costs during the year.

Current liabilities at March 31, 2014 totaled $3.1 million at March 31, 2014 compared to $0.1 million for March 31, 2013. At March 31, 2014, current liabilities consist of $2.5 million owing to Claude to complete the Madsen Gold Project acquisition and $0.7 million in current accounts payable and a funding obligation for the Antofagasta alliance.

Long term liabilities at March 31, 2014 consist of the asset retirement obligation estimated at $2.3 million.

At March 31, 2014, the Company had approximately $9.0 million in unrestricted cash compared to $0.4 million for the same period in the prior year.

Darren O'Brien, P.Geo., Vice President, Exploration, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the scientific and technical information contained in this release is accurate.

This press release should be read in conjunction with Pure Gold's audited consolidated financial statements and Management's Discussion and Analysis for the year ended March 31, 2014. These documents can be found on the Company's website (www.puregoldmining.ca) or under the Company's profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in Canadian dollars.

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next multi-million-ounce gold discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated July 4, 2014 in the section entitled "Risk Factors", under Pure Gold's SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources". While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pure Gold is not an SEC registered company.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.