Puma Exploration Inc. (TSXV: PUMA, OTCQB: PUMXF) (the “Company” or
“Puma”) announces that it has closed the second tranche of the
non-brokered flow-through private placement (“the FT Offering”)
announced on May 11, 2023, for additional gross proceeds of
$1,241,410. The Company also closed an additional non-brokered
private placement of units (“the HC Offering”) for gross proceeds
of $786,200. In May 2023, Puma raised a total of $3,035,645 to be
invested in the 2023 exploration and development of the Williams
Brook Gold Project as outlined on May 25, 2023.
Marcel Robillard, Puma’s President and CEO,
commented, “We are very pleased with the strong level of support
for our Offerings. The funds raised will enable us to further
develop our Williams Brook Project, accelerate growth, and unlock
value for our shareholders. This year, we’re focused on expanding
the Lynx Gold Zone, testing brand-new gold targets along its NE
extension, and exploring the vast property potential of our large
land package, including new targets identified in our regional
work. We look forward to 2023 and thank all our shareholders for
their support as we build Canada’s next gold camp.”
As part of this second tranche, 6,710,324
flow-through units (the “FT Units”) at $0.185 per
FT Unit were issued for gross proceeds of $1,241,410. Each FT Unit
is comprised of one flow-through share and one-half common share
purchase warrant. Each whole warrant is exercisable to purchase one
common share of the Company at $0.22 per share until May
30, 2025.
Another 4,913,750 units (each a
“Unit”) of the Company were also issued at $0.16
per Unit for gross proceeds of $786,200. Each Unit is comprised of
one common share and one common share purchase warrant. Each
warrant is exercisable to purchase one common share of the Company
at $0.22 per share until May 30, 2025.
All the warrants issued within the offerings are
subject to an acceleration clause that entitles the Company to
provide notice (the "Acceleration Notice") to
holders that they will expire 30 days from the date the Company
delivers the Acceleration Notice. The Company can only provide the
Acceleration Notice if the closing price of the Company's Common
Shares on the TSXV is equal to or greater than $0.45 for 30
consecutive trading days. The Acceleration Notice can be provided
at any time after the statutory hold period and before the expiry
date of the warrants.
The net proceeds from the Units will be used for
general and administrative purposes. The net proceeds of the FT
Units will be used to incur eligible Canadian Exploration Expenses
and flow-through mining expenditures, as defined under the Income
Tax Act (Canada), that will be renounced in favour of the
purchasers with an effective date of no later than December 31,
2024. The funds will be used to advance exploration at the Williams
Brook Gold Project and the Company’s assets in Northern New
Brunswick.
In connection with today’s closing of the
offerings, the Company paid aggregate cash finders’ fees
of $116,733 and issued 657,356 non-transferable finder
warrants. The finder warrants are exercisable before May 30, 2025,
at $0.22 per common share.
Related Parties
Insider of the Company participated in the
Private Placement and acquired an aggregate of 27,027 Units. The
purchases by the insider constitute "related party transactions"
within the meaning of Multilateral Instrument 61-101 – Protection
of Minority Security Holders in Special Transactions ("MI
61-101").
The issuances are exempt from the formal
valuation and minority shareholder approval requirements of MI
61-101 as they are distributions of securities for cash, and the
fair market value of the Units issued to, and the consideration
paid by, the insiders did not exceed 25% of the Company's market
capitalization. No new insiders were created, nor any change of
control occurred due to the Private Placement.
All securities issued in connection with today’s
HC Offering and the second tranche of FT Offering are subject to a
four-month and one-day hold period expiring on October 1, 2023. The
Private Placements have received conditional approval from the TSX
Venture Exchange (“TSXV”).
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the Company’s
securities in the United States. The securities offered
pursuant to the Private Placement have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Upcoming Webinar
Puma invites shareholders and other interested
parties to participate in a webinar on Thursday, June 1,
2023, at 4:00 pm EDT. Marcel Robillard,
President and CEO, will provide an overview of the 2023 Exploration
Program and answer questions.
Click on
https://us06web.zoom.us/webinar/register/WN_Bfn8lQPNQYWhHreP_9ogRQ
to register.
Upcoming Gold Investor Events
Puma invites shareholders and interested parties
to schedule a meeting at the upcoming conferences to discuss the
Company's recent news and proposed developments:
The Mining
Investment Event of the North Voltigeurs de Québec
ArmoriesJune 19-21, 2023Register for the event at VID Conferences |
THE Event 2023
Please book your appointment with Mia Boiridy,
Head of Investor Relations, at mboiridy@explorationpuma.com.
About the Williams Brook Gold Project
Puma's flagship Williams Brook Gold Project
covers more than 46,000 ha in Northern New Brunswick, an
established and mining-friendly jurisdiction, near paved roads and
with excellent infrastructure nearby. Since 2021, Puma has made
four (4) significant gold discoveries at Williams Brook, with gold
mineralization hosted in quartz veins at surface.
An aggressive exploration program is planned for
2023 (see May 25, 2023, News Release), and news is expected to be
frequent throughout the year.
About Puma Exploration
Puma Exploration is a Canadian-based mineral
exploration company with precious metals projects near New
Brunswick, Canada's Famous Bathurst Mining Camp ("BMC"). The
Company is committed to deploying its DEAR
strategy (Development,
Exploration, Acquisition, and
Royalties) to generate maximum value for
shareholders with low share dilution.
Connect with us on Facebook / Twitter /
LinkedIn.Visit www.explorationpuma.com for more information or
contact:
Marcel Robillard, President and CEO, (418)
750-8510; president@explorationpuma.com
Mia Boiridy, Head of Investor Relations and
Corporate Development, (250) 575-3305;
mboiridy@explorationpuma.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements: This press release
may contain forward-looking statements. Such forward-looking
statements involve several known and unknown risks, uncertainties,
and other factors that may cause Puma's actual results,
performance, or achievements to be materially different from actual
future results and achievements expressed or implied by such
forward-looking statements. Readers are cautioned not to rely 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.
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