Serabi Gold (LSE: SRB, TSX: SBI) – You Broke The Bonds, And You Loosed The Chains (Transcript)

Serabi Gold - Palito

Interview with Michael Hodgson, CEO of Serabi Gold (LSE:SRB, TSX:SBI).

2019 was a good year for most gold companies, including Serabi Gold, who saw its share price treble. Now Serabi is looking to push on to achieve the Gold returns shareholders will demand.

Serabi’s debt to Sprott Lending Partnership, c. US$6.5M, and Equinox Gold Corp., US$12M, has been looking. Rather than raising equity to resolve the problem, Serabi Gold has opted for US$12M of convertible notes with existing shareholder Greenstone Resources, which will enable them to pay back Equinox. The remaining debt owed to Sprott will be settled from cash reserves. This wards off dilution for now, but if Greenstone decides to convert notes into shares rather than cash that would suggest the company has delivered on its production targets and the share price has bounded on further.

Serabi Gold will now look to push forward with the development of Coringa, which is geophysically and metallurgically similar to Palito, but with a higher gold grade of 8.34g/t. They will likely use their freed-up cash flow to bring Coringa through to production by Q1/21, with the target of a combined, cross-mine AISC of c.$950. Investors will want to see eventual production doubled.

Serabi will use the majority of the c. US$14M in the bank to develop Coringa, introduce an ore sorter at Palito and continue exploration at Sao Chico. Serabi Gold appears to be well set up to build on last year’s 40,000oz+ gold production figures. Let’s keep watch and see if they can deliver.

Interview highlights:

  • Press Release: $12M Convertible Loan
  • What is a Convertible Loan and What Terms Bind it?
  • Had They Looked into Equity Options Beforehand?
  • Greenstone Group’s Support
  • Year of Delivering: What Will They Do With the Money?

Watch the interview here.


Matthew Gordon: You have a press release out this morning: USD$12m convertible note. Why have you done that?

Mike Hodgson: I think everyone will know, Serabi investors and people who have been following us, that we have the Coringa project which we have been advancing, making good permitting progress. It’s a very similar deposit to our Palito operation, so we see it as quick organic growth. We are working through the permitting process and have a license to start the underground operation and that is something that we are eager to do. One outstanding condition on that has been that we have one final payment to make to the company we purchased the asset from, called Equinox. They were called Anfield in the past, but they have since become Equinox, and we owe them USD$12m. Whilst we are eager to start our underground operation at Coringa, it is something that we wouldn’t be comfortable doing until we have fully owned the asset. So the payment will be used to settle the final payment to Equinox which is going to be happening, all being well, at the end of February 2020.

Matthew Gordon: And you also have debt with Sprott outstanding. Will you be tackling that or is that something you can roll over?

Mike Hodgson: The good thing about this USD$12m convertible loan is that it frees us up to use our own cash. We have been running up our cash position quite nicely during 2019. We opened the year with USD$8m and we ended the year with over USD$14m. We have been building up cash. The whole idea, the original intention was to build up that cash as much as possible and to actually make the Equinox payment, but instead, we will use that cash to pay off Sprott, and to actually end that debt as well, which is sitting at a little over USD$6.5m. We will pay that out of cash flow; this is what this convertible loan allows us to do. It liberates our cash to do that, and continue with our various work programs at Palito and Sao Chico. We are actually drilling a lot to try and increase the Resources and to fund that underground development which we are going to do at Coringa from Q2 onwards in this coming year.

Matthew Gordon: What is a convertible?

Mike Hodgson: Okay, well, a convertible loan is essentially money where a lender puts money to the company on a condition over a term, in this case, 16-months, they then have the right to take shares, at a pre-agreed price, the exercised price, which will be set at the beginning of the loan. In other words, in the next few days, they have the right to actually acquire those shares at a fixed price, at the end of the term. They may want it to be converted, so in this case, it would be fairly close to the market price, but they could choose to actually get paid back in cash instead. The company also needs to demonstrate that they can pay the money back in cash as well. At 16-months, cashflow is actually strong enough to do that, but we would obviously expect the conversion with Greenstone to take it in shares.

Matthew Gordon: It is at their election; if your shares are moving up, or if they feel your shares will probably move up, they will elect to take shares. Or they could just treat it as debt and you repay them at the end of the term if you have the cash, or perhaps you refinance it if you didn’t have the cash.

Mike Hodgson: That’s correct.

Matthew Gordon: It is an interesting device which some Juniors use. Did you look at the option of equity, because I imagine that last year, or towards the end of last year, it was a tricky period for equities? I think most companies were asking for a 10% to 15% discount. Did you have those conversations?

Mike Hodgson: We did. Last year started, production-wise, we had a terrific year and as I just said, we generated cash; we generated USD$6m to USD$7m during the year, which was a great effort. We had a poor share performance in Q2/19 when we had two shareholders: one an institution in London, and one a private lender, invested some time ago, both selling their positions and that really took our share price through an all-time low for the last few years of £0.23p. So, at that point, equity was absolutely out of the question.

Despite that, we did see a price recovery during the year. Serabi, like many Juniors has suffered over the year, with liquidity – we did actually find over the second half, on this Gold run on H2/19 – we saw a lot of investors come into the stock and that really drove the price up. For once, in quite a while, we had some real liquidity, share price went back up to about to £0.70p/80p range, which certainly brought the prospect of equity into question. But having investigated it, speaking to the brokers, the board, major shareholders generally, it was still expensive money. Most of the equity deals kicking around wanted 20% discount to the market, so it was still going to be quite an expensive way of doing this.

So, Greenstone; they are fairly new investors with us. They have been very supportive. They offered us a convertible loan, so it seemed favourable, the cheapest money and the best option to take.

Matthew Gordon: Quite an endorsement by Greenstone. For people who don’t know who Greenstone is, they are a geologically technical fund in London. This takes their position to 37.8% potentially, or something like it.

Mike Hodgson: Yes.

Matthew Gordon: So quite an endorsement from them. You must be pleased to have them onboard and supporting you?

MIKE HODGSON: Absolutely. They took a big role in our company in that we have regular technical discussions. We have had a lot of support. They have got a good engine room; people who we can call on. They have obviously got a huge reach in terms of things that the company can be doing as well. They are super helpful and it is good to have a shareholder of that type of calibre in our stock.

Matthew Gordon: Smart money with deep pockets. Very nice. Can we talk about what you are actually going to do with the money? You have talked in the past about obviously getting into production. I also want to look at what you’ve been doing at Palito and Sao Chico because you have talked about exploration in the past, so what is happening this year with this new restructured Serabi Gold company?

Mike Hodgson: Yes. Well we are really, really busy at the moment. We had a great year. We broke 40,000oz for the first time ever, which was a huge achievement. We ended a quarter, Q4/19 with another 10,000oz which was really pleasing. So that means that 5 out of our last 6 quarters have broken 10,000oz, so we really are in regime, established at 40,000oz. Very steady – which is not something you usually see with a small producer. It is very consistent. The grades are very solid. Production and throughputs are going well at the mines. We still remain a plant-constrained operation; which I will come onto in a moment. We are doing something about that, but it was still very, very pleasing. We expect this year to be more of the same with the good news that we have our ore-sorter, which is being commissioned as I speak. I am actually going out very quickly next week, to site to see this machine working. We are commissioning it right now. We have got the manufacturer at site. We are calibrating it.

Now, the effect of this ore-sorter is that, the most diluted ore that we have got, which is generally the Palito development ore, and some of the lower-grade Stope ore, we can pass this material through this ore sorter, which essentially removes waste. Either by optical; by colour, or by density. Now, we are a plant-constrained operation. Our restriction is the milling section which is around 550tpd. If the grade is sitting normally at about 7g/t or 8g/t, that means that at the end of the day, the maximum output is around 40,000oz.

The ore sorter is going to sort of screen out some of that waste rock which is currently entering the process plant and will actually liberate some space so we can actually add more higher-grade ore and get that plant processing the same volume but of a slightly higher-grade. So if the grade can go up, from say 8g/t to 10g/t, we can squeeze that plant to get something like 45,000oz to 46,000oz out of it this year.

That, obviously, might not sound a lot but it is 12.5% to 15% more. It goes straight to the bottom-line – literally. The additional mining cost is there, but the additional processing cost is not. So it makes a huge amount of sense. So that is going to be a great plus in the actual operation.

At Sao Chico, which is our satellite ore body, we feel that that is probably the place where the extra ore production, mine production, will come from, to take up the slack that I have just talked about; add these extra ounces of higher-grade ore. And we are drilling there at the moment and have been drilling for around 2-months now and that will continue for the next 3 or 4-months. We are doing step-out drilling there. It is going very well. We are just literally drilling extensions to the current mine limits. If you can imagine an ore body – it is open to the East, it is open to the West, and open at depth, we are doing underground drilling with a contractor. Doing deep underground diamond drilling, to test the ore body at depth. We will be doing the same on strike at the surface with the contractor as well.  So that aggressive drill program is going to go on for the rest of…until Q2/20, with a view of hopefully drilling a new Resource update at Chico at the end of Q2/Q3. But most importantly, it is going to actually allow us to run our mine plan a bit longer. That’s the key there.

We also have at Sao Chico, outside the mine limits, but in our exploration licensed areas, some really exciting geophysics anomalies which we actually discovered back in 2018. We have finally got a drill rig in those as well so we are actually drilling those at the moment, we are only into our second hole. The results of which will be coming out in the next 2-months. So we are going to see a steady stream of drill results, coming particularly from Sao Chico, the mine itself, the step-out drilling, and drilling anomalies during the first half of this year.

So all of this is being funded out of our cash flow. We ended the year with USD$40m cash in the bank. We are going to pay USD$6.5m off to Sprott at the end of next month, and the rest of the money will be used, along with contributing cashflows we continue that exploration program. And finally, as obviously, and the real reason we are doing the convertible loan, is the work as well at Coringa.   

We have the mining license. Coringa, our new asset which we are going to bring on stream in the next 18-months. We are making great progress on the permitting.  We are very close to getting the first license, the most difficult license to get which is called the Preliminary License. That is conditional upon a public hearing which we are going to have. The date has now been set; it’s on 6th February. That’s when all of the stakeholders go to a public meeting which is in the region. It is important that it is in the region because it is in the town where Serabi is already one of the biggest employers and therefore, we are a big fish in a small pond. We have great local support. One really important note is that on December 6th, we actually got a sign-off from FUNAI – the Federal Agency for indigenous communities which these days, one can imagine in the Amazon, that is a very important group of people, which you do really need their support. They actually signed off with full support for the project. There will be no negative impact for them, in fact, positives, so that was a tremendous piece of news for us.  Which means that we will go into that public hearing well placed, albeit the public hearing will go well and we will get the preliminary license on the back of that.

That is the hardest license and where you are going to get stopped. You are going to get stumbling blocks but we feel pretty confident. We have made the project pretty water-tight. We have got no tailings there anymore. All of the environmental impact studies etc in our plan will be to not use tailings and dry-stack tailings, again, it is as good as it can be so we feel very confident on the back of that meeting on February 6th, we will have positive news.

Just to finish on that point, we already do have the license to start the underground mine. We are going to get that underway as soon as possible. It is important to demonstrate that we are a company that is really committed to the project in the region. Getting it started, putting jobs in the local community at the earliest stage and getting that all-important geological information for lenders and equity down the line. However, we finally fund the project, at the back end of 2021, we want to advance the project and get more confidence on the asset itself.

We want to know our AISC. We have actually managed about USD$1,050 for the year in 2019 with our production, and Coringa is going to bring in an additional 35,000oz to 40,000oz. Similar cost, but whilst there won’t be direct operational synergy, as they is 200kms apart, there will obviously be maintenance synergies, management synergies, some shared facilities like assay facilities and we are trying to locate some of those facilities between Palito and Sau Chico and in a city called Nova Polesa, which basically sits equidistant between the two assets. It is a town of about 40,000 people. There are a lot of positives there and that, I think those extra ounces will come in low-$900s so overall, we will be an 80,000oz producer with around an AISC of USD$950 as opposed to USD$1,050 today. So, with today’s Gold prices and today’s exchange rates; that’s a pretty nice place to be for a company of our size.

Matthew Gordon: Last year your share price trebled. You finished with a lot of cash in the bank. You are re-structuring. Trying to give yourself a good start to the year. What we need to see from you is delivery of all of these things; getting into production, doubling your production with the addition of Coringa, so it is a case of delivering and doing what you say this year, isn’t it, for you?

Mike Hodgson: It is, but it is not something we haven’t done before; at the end of the day, it is repetition of Palito so we are not leaving our comfort zone, we are just doing the same again.

Matthew Gordon: Step and repeat: cookie cutter approach. Mike, thanks for that update. We will stay in touch and do let us know how you get on with that Preliminary Licence. It sounds like a big step for you.


If you see something in this article that you agree with, or even disagree with, please let us know in the comments below.

Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situations or needs. You should not rely on any advice and / or information contained in this website or via any digital Crux Investor communications. Before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.

Serabi Gold - Palito

Pure Gold Mining (TSX-V: PGM) – Funded to Production H2/20, High-Grade, Low AISC (Transcript)

Interview with Darin Labrenz, President & CEO of Gold Developer Pure Gold Mining (TSX-V:PGM). If you want to invest in mining or invest in Gold you need to be sure about the company’s strategy and the management team’s ability to deliver. Pure Gold recently closed a debt financing agreement with Sprott for $90M. This follows closely on from an equity raise in July for $47.5M. This means that they are fully financed through to production by the end of 2020. The company is hoping that their story will mean investors invest in Gold in Canada.

Investing in mining has slowed down in Canada in the last two years. Investing in stocks such as PGM has been slow too, especially compared to its peers. Darin Labrenz explains why now is a good time to look at Pure Gold Mining and mining stocks in general. He tells us why investors should not be nervous about their mine plan following the Feasibility Study. This is a large area play which needs planning and investing in Gold mines is expensive so investors need confidence.

Interview highlights:

  • Overview of the Company
  • Sprott Debt Financing and Company Financials
  • The Market: When is the Share Price Going to Move and Why?
  • Feasibility Study, Resource Risk & Assets: What are They Focusing On?
  • Why Should You Invest in Pure Gold?
  • Entry into the LSE, Share Price and Shareholders

Click here to watch the interview.


Matthew Gordon: We spoke at the end of April. A lot of good things have happened since then. So why don’t we kick off, just give people new to this story, one-minute summary and then we’ll get into some of these exciting developments. 

Darin Labrenz: We are Pure Gold Mining. Our flagship asset is the Madison Red Lake Mine, located in Northwest Ontario. In February of this year we completed a Feasibility Study that outlines an 800tpd underground mine with 1Moz Reserves at 9g/t, which makes it today the highest-grade development projects in Canada. Recently we announced a $90M a debt project finance package, which puts us in a position today where we’re fully funded for construction and anticipate for pour by the end of 2020. 

Matthew Gordon: Well, let’s kick off with one of those things you just mentioned. I think it’s the big news of the days, the Sprott debt financing. Can you tell us a little bit about how that breaks down? In fact, how did it come about because you listed on the LSE recently. You were going to talk to both markets about raising some capital. However, Sprott has come along and are giving everything you want. 

Darin Labrenz: We listed in London in May, looking to satisfy the equity component of our project financing ideally with a raise that was going to be supported by both the UK audience and the North American audience. In the end, Sprott did come along with the Bought Deal proposal and the lead investor in that was Eric Sprott himself. So Eric took down $20M of the $47.5M that we raised, putting them as a 10.2% shareholder of the company. We were able to draw in some UK participation. It wasn’t as much as we obviously had hoped for, but certainly did see some support from UK as well. Our listing in UK is still part of a broader plan to increase liquidity exposure for the company. So $47.5M raised in equity. And then we followed that up with a $90M financing package, which is broken down to $65M debt facility and a $25M US Callable Gold stream. 

Matthew Gordon: That’s a lot of moving parts. You’re fully funded now. Is that correct?

Darin Labrenz: We’re fully funded. In fact, when you look at our initial capital requirement for the mine, it’s a $71M. We raised $90M in our facility, plus the $47.5M equity raise and so the fantastic thing is we’re sitting in a position right now where we’re set to pour first gold in the end of next year, but we’re still continuing to drill and continue to pursue growth strategy for the company and in the financing that we’ve done is enabled us to be able to pursue that. 

Matthew Gordon: Why $47.5M equity? Why not less? It would be less dilutive? Is that because you didn’t know at the time. Were you engaged with Sprott at the time with regards to this debt facility?

Darin Labrenz: We were well down a path, with respect to a project finance facility, but at the end of the day, we didn’t really know what the final outcome would be in terms of the quantum that we would raise, the breakdown of how it would be raised. And so the $47.5M gives us the most flexibility moving forward. One of the things we want to be able to do and will be able to with this is, as I mentioned, to pursue a fairly aggressive growth strategy. And so we do continue to drill on the property and we’ll do so through the balance that you’re looking to increase Resources and areas, our new discoveries, that weren’t incorporated in the feasibility plan, we’re looking to ultimately incorporate them. The other thing is with this financing as it gives us a lot of flexibility moving forward with respect to the project build. No need for cost overrun facility, given that we have a fair bit of room in there with respect to the equity and debt components of the project finance package.

Matthew Gordon: If I look at the share chart it makes for a kind of sober reading. As I said when we spoke last time, you guys had got some great numbers in there, but the market didn’t really care and you are up from, I think we when we spoke at $0.55, but at $0.62 today, but it’s not a lot of movement. Obviously, you’ve had a bit of dilution recently, but do you think that this has just been about timing in terms of the equity raise, the way the market was going. Obviously in the last two months, Gold has moved considerably. We’ll see where it goes. If this had happened 3 months later where it clearly would have been better for you? How do you assess what’s gone on in the last three months re. around the financing?

Darin Labrenz: We can’t really predict what direction the markets are going to go. We were happy to receive a proposal from Sprott that included the equity investment by Eric Sprott. I see this as another sign of validation. When you look at the company, we have 4 cornerstone investors. You’ve got AngloGold Ashanti, which participated in equity financing, maintaining their pro-rata position so they’re a 14% shareholder. You’ve got Eric Sprott now at 10%, I’ve got Rob McEwen at 5%, and you’ve got Newmont Gold Corp in there. So a strong validation from two senior producers and two mining Titans. I can say when you look at Sprott and you look at Rob McEwen, they didn’t buy Pure Gold to come in for the mine that we’re trying to build. They bought with the anticipation that it could be much larger. And that’s certainly our view. You look at some of the opportunities that those two gentlemen have been an integral part of Gold Corp.  Rob McEwan, founder of Goldcorp, that company was launched really by the discovery of the high-grade zone, deeper down in the Red Lake Mine. And similarly, when you look at Kirkland Lake, which has been highly successful, led by Eric Sprott, the Fosterville mine has really rekindled itself with deeper down, high-grade discoveries. We think that that same potential exists at Madison and the financing we raised allows us to pursue a plan to demonstrate that. 

Matthew Gordon: But coming at it from the perspective of a retail investors, high net worth’s, family office investors, we’re looking at where the shares have been doing. You’ve been busy.  You’ve got a great grades, great project, it’s cheap in terms of the cap backs component to this, but the market just hasn’t reacted in the way that you’d hoped. With Eric Sprott coming in now and Sprott themselves coming into this, do you think that’s good for the institutional players or do you think there’s room for retail to actually do well as well? When’s the share price going to move, and why? 

Darin Labrenz: We clearly think that we’re undervalued. I have no doubt that there was a bit of an overhang with respect to project finance. So when you look at that typical mining investment curve, often companies will stall as they go into a period of project finance, into a construction period and ultimately start to generate cashflow where you tend to rerate. We think we’re really unique in this scenario in that our project build is very short. And so we made it a decision to construct last week and we’ve got a 13 month project build and anticipate pouring Gold by the second half next year. And we see this as the best of both worlds because not only are we moving towards the cashflow positive, but we have sufficient financing and funds in the treasury today to continue to drill in team to generate that growth interest. 

Matthew Gordon: Let’s talk about the Feasibility Study. Because if I look at chat rooms and forums, people are nervous about the plan, can you tell them why they shouldn’t be in terms of the deep watering access, rehabilitation…those sorts of things? Why should they not be nervous about the plan that you guys have laid out here? Because if I look back, a lot of Gold companies, their prices have popped. Gold at over $1,500. Yours has moved a little bit, but not a lot. Do think there’s this nervousness in the market about your plan?

Darin Labrenz:  Let’s talk about the Resource first and Resource risk. When you look at our project, we’ve got more than 1M meters of drilling that has gone into defining the Resource. In fact, the average spacing between drill holes within the feasibility reserve is 6.5m which is absolutely incredible. I mean, I’ve never worked on a project with that kind of density of drilling. So from that standpoint the Resource itself is very well-informed. This is a brand new mine that we’re building, all of the development is new. So when you look at the initial capital requirement $95M million. We’ve got about $31M going into preproduction underground development that’s putting in new openings to access the ore body. With respect to de-watering well that’s a natural phenomenon that every underground mine has to go through and I don’t see any particular risks associated with that. At the end of the day, we’ve got a very high-grade reserve, 9g/t, 1Moz in what I would call the starter mine and a huge opportunity here for additional Resource and reserve development as we push forward. 

Matthew Gordon: But what is the plan? This is a very big area you’re dealing with here. This isn’t one small asset, you know where everything is because you’ve done a lot of drilling. You’ve got a plan for a development of a whole entire area. What are you focusing on? 

Darin Labrenz: I mean it is a big area, but we’re talking about a mine that’s going to last for 12 years, in the base case. So we’ve got new discoveries near surface that we think have the potential to impact the mine as we move forward and we continue to drill in those areas. Ultimately, we’re looking at establishing all of the access required to develop the min. We’ll start with the existing ramp, which goes down 150 meters and we’re going to push that ramp downwards. We’ll eventually start moving into access development for the first stoping areas that’ll form the first part of our mine plan. And then in year three, we’re going to incorporate the shaft. And so what you ultimately see here is meta-materials accessing the mine via a brand-new ramp system and then all of the ore will be hoisted out of the shaft, which gives you a real operational benefit. So this is a reasonable size area but it’s an area that’s going to be developed over the course of 12 years and we think has potential to go for much longer than that. 

Matthew Gordon: So the plan will evolve over time the more data you gather. And so do you feel for right now, you’re fully funded. You’ve got enough margin in there for error to make sure that this thing gets into production towards the end of next year, you’re good?

Darin Labrenz: That’s right. And let’s not forget that our project has a history. It operated successfully for 36 years, generated 2.6Moz Gold over that period at a grade of 10g/t. So we have the benefit of a successful mining history and we also conducted a test mining program last year were also achieve plus 10g/t in test mining.  Within the two areas that we had planned in mine. Reconciliation was fantastic. We were within 1% on our expected tons. We overachieved our grade and at the end of the day we realised 13% more ounces out of those two areas. But one of the things that test mine showed us, is that with drilling hang wall and foot wall we were able to see better continuity in a lower grade portion of the model and ultimately, we were able to extract another 1,575t out of the area of grade of 8.7g/t, such that we actually achieved better than 50% more ounces than we expect in that area with that additional discovery. So, those all go along when you’re de-risking the existing infrastructure that we have in place. The 1M meters of drilling, very close density of drilling, it’s all brand-new development, fresh rock. This is a newer body that sits well away from any historical mining. And, then we’ve mined ourselves and achieved what we expected. 

Matthew Gordon: And, so remind me again some of the numbers, the IRR is 35%-36% sort of level. What was the AISC on this? 

Darin Labrenz: It’s $787 per ounce. 

Matthew Gordon: A great AISC. So that all the figures that one we typically look at on this project are good. You’ve just been in this rather boring period waiting for project finance to come through. But you think people should start paying attention now, because you’re moving to production and it’s quick production too. Let’s not forget there’s a very small CapEx required for this.

Darin Labrenz: Exactly. And our project obviously is very highly levered to Gold. All of our costs are in Canadian dollars. One of the things that quietly happened last week was when Gold hit $1,500per ounce in Canadian dollar terms across $2,000, which was an all-time record high in Canadian dollars. So when you look at our IRR and after tax NPV of the project, and our base case, which was $1,275 grounds. Our NPV is $250M. Today it’s $400M, so you can see the impact of the rising Gold price., And we think that we’ve got a project here that perfectly timed to deliver into the market. 

Matthew Gordon: Well, you and a lot of other Gold companies at the moment feel that way and we need Gold to sustain. That’s really interesting. Can we just finish off on the entry into the LSE? Obviously, you did that for a purpose to get out there and start talking to and have new investors see the story because the Canadian market was slightly frozen. How’s that gone for you? 

Darin Labrenz: We’re really excited about our secondary listing on the main market of the London Stock Exchange. We’ve got a bit of work ahead of us to continue to broaden the exposure, generate interest and generate liquidity. We’ve traded 500,000 shares on the London market today, which is a new milestone for us and we’re committed to it. We’ll continue to do to try and develop the exposure for Pure Gold and our project.

Matthew Gordon: So that’s great about what’s going on with the LSE? How’s trading overall? 

Darin Labrenz: We’ve been trading a lot of volume here over the last couple of weeks. In fact, we’ve created about 25M shares. So, I think we’ve had a bit of an overhang with respect to the financing, but I think we’re setting a new floor here and we’re really ready to break out. 

Matthew Gordon: You’ve got marketing in Canada and marketing in London, and you’re committed to that?

Darin Labrenz: Absolutely

Matthew Gordon: So, Retail’s important to you?

Darin Labrenz: All of our shareholders are important to us. Retail is a key component of our shareholder base and will continue to be so in the future. 

Matthew Gordon: Thanks very much for today. Really enjoyed that conversation. Thanks for the update. 

Darin Labrenz: Thank you very much. I appreciate the opportunity to talk about our project and I appreciate the line of questioning. You’ve taken a lot of character to go in depth and ask questions about our project that might not otherwise be brought to light so I appreciate the opportunity to respond. Thank you. 


Company page: http://puregoldmining.ca/

If you see something in this article that you agree with, or even disagree with, please let us know in the comments below.

Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situations or needs. You should not rely on any advice and / or information contained in this website or via any digital Crux Investor communications. Before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.