Pure Gold Mining Secured Initial Order for Creditor Protection

SEATTLE (Scrap Monster): Pure Gold Mining Inc. announced that it has received an initial order for creditor protection from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA). It must be noted that the miner had suspended underground mining operations at its Ontario mine, which has been facing a series of issues since it commenced production last year.

According to latest press release, the company had decided to seek CCAA proceedings after considering its cash position, scheduled debt payments, forecast revenue and expenses. Also, it had considered all available alternatives to an application for creditor protection, before deciding to go ahead with the application.

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By way of initial order, KSV Restructuring has been named as the court-appointed company monitor. The company management will be responsible for day-to-day operations of the mine, under the supervision of KSV. The mine will continue to remain on care and maintenance. The order also authorizes the company to borrow under an interim financing credit facility from its lending partner so as to help the company meet its immediate cash needs for continuation of its business activities.

Meantime, Pure Gold Mining stated that it will consider all available transactional and restructuring options.