Mr. Marcel Robillard reports
PUMA EXPLORATION CLOSES $1.6 MILLION FINANCING LED BY A STRATEGIC INVESTMENT BY CRESCAT CAPITAL FOR $960,000
Puma Exploration Inc. has closed the fully subscribed hard cash unit offering for an amount of $1.6-million. The company issued five million units at the price of 32 cents per unit. Each unit comprises one common share and one common share purchase warrant. Each warrant gives its holder the right to purchase one common share at a price of 50 cents per share until Aug. 19, 2023.
Crescat Portfolio Management LLC (for itself and/or for accounts managed by Crescat ) has participated as expected in the offering by making a strategic investment of $960,000, representing 60 per cent of the financing.
Two insiders of the company participated in the private placement for aggregate gross proceeds of $128,000. These insiders purchased units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and minority shareholder approval requirements, pursuant to sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, on the basis that the fair market value of such participation or the consideration paid by such insiders does not exceed 25 per cent of the market capitalization of the company.
In connection with the private placement, the company has paid cash finders' fees totalling $81,920 and issued 256,000 finders' warrants, each entitling the holder to acquire one additional common share of Puma at a price of 50 cents for 24 months. All securities issued to purchasers and finders under the offering are subject to a four-month holding period from the date of issuance of the securities, pursuant to applicable securities legislation and the policies of the TSX Venture Exchange. The placement is subject to the final approval of the TSX Venture Exchange.
The net proceeds from this offering will be used to increase the current continuing 2,000-metre diamond drill program to 10,000 metres at the Williams Brook gold project, located in New Brunswick, Canada, and for general working capital purposes.
The technical team is on site on the Williams Brook gold property to finalize the summer exploration program, which currently includes the trenching and stripping of the new discoveries made during the initial phase of exploration and the inaugural drilling of the O'Neil gold trend. An update on exploration programs will be shared shortly.
About Puma Exploration
Puma Exploration is a Canadian-based mineral exploration company with precious and base metals projects in early to advanced stages located in the Famous Bathurst mining camp (BMC) in New Brunswick, Canada. Great efforts will be made by the company in the coming years to deploy its DEAR (development, exploration, acquisition and royalties) strategy in order to generate maximum value for shareholders with low share dilution.
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