LRTNF - Pure Gold Mining: More Share Dilution To Finish The Year
- Pure Gold Mining announced its third capital raise in less than 18 months last week, with this equity offering coming with a half-warrant, and completed at 52-week lows.
- This recent capital raise has pushed Pure Gold's fully diluted share count closer to 490 million and was completed at the equivalent of US$0.76.
- While Pure Gold has declined over 67% from its highs, which would normally suggest undervaluation, an exorbitant valuation pre-correction combined with continued share dilution have partially offset this.
- At a current share price of US$0.79, Pure Gold's reward/risk has improved considerably, but at 1.2x NPV (5%), I continue to see much better value elsewhere in the sector.
For further details see:
Pure Gold Mining: More Share Dilution To Finish The Year