Puma Exploration Inc. is pleased to announce that it has closed its previously announced private placement financing.
Puma Exploration Inc. (TSXV:PUMA) (the “Company” or “Puma”) is pleased to announce that it has closed its previously announced (see news releases of July 25, 2019 and August 27, 2019) private placement financing (the “Financing”). The Company has issued a total of 43,664,467 units for a total of $654,967. The units were offered at a price of $0.015 and consisted of one common share in the Company and one share purchase warrant. Each warrant is exercisable to purchase one additional common share at $0.05 for 48 months from the date of issuance.
No finder’s fees were paid in connection with the closing of the Financing.
Insiders of the Company participated in the Private Placement, subscribing for 5,981,133 units for proceeds of $89,717. Such participation constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on the transaction being exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the transaction, nor the consideration paid, exceeds 25% of the Company’s market capitalization.
All securities issued pursuant to the Financing are subject to a four-month and one day holding period expiring on January 28, 2020. The Company will use the proceeds of the offering for purposes of working capital, and to maintain and preserve its existing operations, activities and assets.
ABOUT PUMA EXPLORATION
Puma is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. While the priority remains to secure and finalize the acquisition of the Murray Brook project, the emphasis will be directed towards the exploration of the new targets identified around the existing deposits at Murray Brook and Chester, but also within underexplored targets located on both favourable horizons within the properties. In order to achieve its main objectives, Puma has proposed a restructuration (press release July 25, 2019) which would not only provide the Company with more optionality on the acquisition, exploration, and development of the Murray Brook project, but would once again make Puma one of the most active exploration companies in New Brunswick.
The Company’s objective for 2019-20 also includes selling undervalued assets as to increase the value of the company to its shareholders. Puma holds 14,200,000 shares of Targets Minerals, exploring for precious metals (Gold-Silver) in New Brunswick and 4,750,000 shares of BWR Resources exploring for gold in Manitoba, and also an option agreement with Rio Tinto for the Red Brook Project in New Brunswick.
QUALIFIED PERSONS AND QC/AC
Technical information provided in this news release was prepared and reviewed by Marcel Robillard, P.Geo., President, and Dominique Gagné, P.Geo., Vice President Exploration of Puma Exploration, qualified persons as defined by NI 43-101. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Mr. Robillard and Mr. Gagné are not independent of the Company, as both are officers and shareholders thereof.
Marcel Robillard, President
Forward-Looking Statements: This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Puma to be materially different from actual future results and achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, except as required by law. Puma undertakes no obligation to publicly update or revise any forward-looking statements. These risks and uncertainties are described in the quarterly and annual reports and in the documents submitted to the securities administration.