With the completion of the financing, Pure Gold said its board of directors has approved a "decision to construct" for the Madsen Red Lake mine.

"We have achieved our objective of securing a flexible financing package on terms that are competitive and protect the upside for our shareholders. The optionality of repayment of both the facility and the gold stream in a rising gold price environment provides an opportunity to refinance once in production and generating solid cash flows from the mine," said president and CEO Darin Labrenz.

The Madsen feasibility study details an 800-tonne-per-day underground mining operation to produce 80,000 ounces a year over a 12-year mine life at an initial capital cost of C$95 million (US$71 million), with first production expected at the end of 2020.

According to Pure Gold, initial plans for detailed engineering and procurement are being formalised, and a hiring strategy has been initiated to facilitate a short project implementation schedule.

The site already benefits from existing infrastructure, including a mill and tailings facility, paved highway access, and access to power and water.