PureGold had to place its namesake mine under care and maintenance last week, as it failed to secure funds to keep operations going, despite increasing production and cash flow.
The Vancouver-based firm said the initial order seeks a stay of creditor claims and proceedings and authorization to borrow under an interim financing credit facility from its lending partner, Sprott Private Resource Lending II. It also comprises the appointment of KSV Restructuring as court-appointed company monitor.
While under creditor protection, PureGold would consider all available transactional and restructuring options with a goal of maximizing value for the company and its stakeholders, the TSX-V- and LSE-listed company said.
The PureGold mine, in Red Lake, will remain on care and maintenance and the management of the company will remain responsible for day-to-day operations, under the oversight of KSV.
The company poured first gold at…
