Pure Gold Mining (TSXV:PGM, LSE:PUR) announced on Wednesday it has arranged a private placement with billionaire Canadian mining investor Eric Sprott, who will purchase 9.87 million common shares of the company at C$1.52 per share for gross proceeds of C$15 million.

“Pure Gold has all the attributes I look for in a company — location, grade, size and growth,” Sprott said in a statement. 

“Pure Gold’s mine in Red Lake has over 7 km of strike with known high-grade shoots that have only been defined down to 1,200 metres compared to 2,500 metres in the neighbouring Red Lake mine complex,” he added. 

Sprott also compared the ultra-high grade hits in the 8 zone with the HG Zone that built Goldcorp, as well as SMC at Macassa and the Swan Zone at Fosterville, stating “these are the types of discoveries that have the potential to be company makers and tend to lead to a much higher production profile than originally given credit.”

The Madsen mine in Red Lake, Ontario, is currently the only gold project under construction in Canada. Last week, the company assured investors that the mine is on track for its first gold pour by the end of 2020.

Pure Gold CEO Darin Labrenz said the new investment in exploration enables the company to “concurrently ramp up its focus on aggressive resource growth without impacting on its capital budget for final mine completion and first gold pour.”

Meanwhile, the company saw a significant jump in its stock earlier this week. At Tuesday’s close, shares of Pure Gold Mining were up over 14%.