South Africa-based major AngloGold Ashanti’s ownership percentage in Canadian bullion miner Pure Gold Mining has increased to 14.96% of the issued and outstanding common shares, following the closing of a nonbrokered private placement.

The company, which is advancing the PureGold mining project in Red Lake, Ontario, issued 3 307 619 units to AngloGold Ashanti at C$1.05 each, for aggregate gross proceeds of C$3.47-million.

Each unit consisted of one common share and one-half of a common share purchase warrant. Each warrant is transferable and entitles the holder to acquire one common share of the company until April 15, 2023, at C$1.36 a share.

Pure Gold will use the proceeds of the offering to fund the continued ramp-up of operations at its mine, for underground drilling and development of high-grade 8 zone, and for general corporate purposes.