De Beers Canada now controls 12.07 percent of Pure Gold Minerals Inc., by having acquired 27.5 million common shares plus warrants to acquire another 5 million commons shares. Ten million shares, purchased for $600,000, are subject to lock-up due to pre-arranged property option agreements. De Beers granted Pure Gold sole right to an 85 percent co-ownership interest in certain joint venture properties in the arctic region.
Pure Gold closed a private placement on August 11 in which the company earned $3.6 million in brokered funds and $184,000 in non-brokered funds, all of which was in addition to the De Beers deal.
“The closing of the private placements and the rights offering totaling in excess of $5 million represents a further milestone for Pure Gold as they assure the corporation’s ongoing participation in the High Arctic Program with De Beers, one of the most significant agreements that Pure Gold has ever concluded” said Gordon Keevil, president of Pure Gold.
The properties within the High Arctic Portfolio include Baffin Island, Eden Point, Muskox Hill, Chartrand Lake, Byron Bay, and Mount Pelly.