Pure Gold Mining Shares Rise as Canadian Court Grants Relief

By Anthony O. Goriainoff

Shares of Pure Gold Mining Inc. rose Friday after the company said that it has been granted a Sales and Investment Solicitation Process order, or SISP, among other relief, from the Supreme Court of British Columbia in Canada.
London-listed shares at 0952 GMT were up 0.50 pence, or 45%, at 1.60 pence.

The London- and Toronto-listed gold mining company said the relief was granted following an application in its proceedings under the Companies’ Creditors Arrangement Act.
The SISP has approved a sales and investment solicitation process for all of the company’s assets, undertakings and property, including its Ontario mine project, it said.
Furthermore, it approved the engagement of National Bank Financial Inc. as the company’s sales agent for the purposes of the SISP.
On Oct. 24, the company warned of its financial situation and put its mine on care and maintenance. The company said at the time that if it couldn’t get alternative financing then it wouldn’t be able to meet its obligations, leading to a default under its debt obligations.
Pure Gold Mining said Friday that the court additionally granted orders which, among other items, authorized it to borrow additional funds under an interim credit facility with its lending partner so as to meet its immediate cash needs.
It also approved a key employee retention plan which, among other things, provides payments to the company’s key employees.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com