Pure Gold Mining Inc.

Supreme Court of British ColumbiaCommencement Date: April 04, 2022


April 26, 2024: April 26, 2024: PureGold has brought an application that it be removed as a defendant in the class action on the basis that because of its insolvency it can no longer be pursued, and for the same reason PureGold’s D&O insurer states that it would not be required to provide insurance coverage in relation to PureGold in this class action. That is despite the fact that the Court was advised that the insolvency would not affect the class action, and D&O liability insurance would remain available to respond to the claim if the class action is successful (see, here, at page 17. Specifically, the insurer is taking the position that it was not a party to the company’s insolvency, and it is not bound by whatever representation that was submitted to the Court. We have received personal notes and stories from investors regarding how they have been affected as a result of PureGold’s insolvency. We believe these are stories of real people, retail investors, which the Court should also hear. We are inviting affected investors to write to us at [email protected] in confidence and provide any note or comment that they wish to be brought to the attention of the Court.

January 3, 2024: This proposed class action has been expanded to include a putative class of investors who invested in the securities of PureGold, whether in the primary market or in the secondary market, between March 31, 2021 and October 21, 2022. For further details regarding class membership criteria, see the below.


This is a securities class proceeding against Pure Gold Mining Inc. (TSXV: PGM, OTCMKTS: LRTNF, LON: PUR), certain of its current and former directors and officers, and the underwriters for PureGold’s offerings in May and September 2021 and February 2022. The action alleges that the Defendants failed to properly disclose the company’s operational and financial problems at its sole material project, the Pure Gold Mine, located in Red Lake, Ontario.

Class Membership Criteria

This securities class proceeding has been brought on behalf of all persons and entities, wherever they may reside or may be domiciled, who purchased or otherwise acquired the securities of PureGold in any of the primary market Offerings and/or in the secondary market between March 31, 2021 and October 21, 2022, inclusive, and held some or all of such securities as of the release of a Corrective Disclosure, except the Excluded Persons.

For the purposes of the proposed Class Definition, the Offerings are as follows:

a. the May 2021 Offering: the $17.3 million offering of PureGold’s Flow-Through Shares pursuant to a Short Form Prospectus dated April 28, 2021 at the selling price of $1.52 per Flow-Through Share;

b. the September 2021 Offering: the $23 million offering of PureGold’s Units pursuant to a Short Form Prospectus dated September 21, 2021 at the selling price of $1.05 per Unit. Each Unit consisted of one common share and one-half of one common share purchase warrant; and

c. the February 2022 Private Placement: the brokered $14 million offering of PureGold’s common shares at a price of $0.53 per common share.

For the purposes of the proposed Class Definition, the Corrective Disclosures are as follows:

a. PureGold’s March 28, 2022 News Release titled “PureGold Mine Operations Update and 2022 Corporate Outlook,” and its associated FY 2021 Annual Disclosures; and

b. PureGold’s October 24, 2022 News Release titled “PureGold Provides Financial and Operations Update.”

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