LRTNF - Pure Gold suspends operations places mine on care and maintenance

PureGold Mining ( OTCPK:LRTNF ) -85.1% in Monday's trading after saying it suspended operations and placed its PureGold Mine in Ontario on care and maintenance, causing it to withdraw guidance for Q4.

PureGold ( OTCPK:LRTNF ) said the suspension is necessary because the mine has not yet achieved consistent positive site-level cash flow, despite recent reductions in operating costs and Q/Q increases in production.

The company said its current cash balance is ~$2M and net working capital deficit is ~$13M.

PureGold ( OTCPK:LRTNF ) said it is working on options, including a possible sale or restructuring, with its lender, a fund managed by Sprott Resource Lending.

PureGold Mining ( OTCPK:LRTNF ) previously reported a Q2 GAAP loss of $0.04/share on revenues of $8.5M .

For further details see: