Puma Exploration Inc., PUMA-TSXV, (“Puma”) is pleased to announce
that it will transfer all of its copper assets to its wholly-owned
subsidiary Murray Brook Minerals Inc. The objective is to generate
maximum value to its shareholders from its base metal projects
while Puma Exploration continues to concentrate on its new Flagship
Triple Fault Gold Project in New Brunswick, Canada.
“The current business arrangement represents an
important opportunity for Puma’s shareholders to continue to
explore and develop the current copper projects within its new
subsidiary on which the company has already invested $3,211,057 in
exploration (book value as of May 31, 2020) in the last 15 years in
Northern New Brunswick”, notes Marcel Robillard, President and CEO
of Puma Exploration. “We are expecting renewed interest in the base
metals sector, particularly for copper, as green energy metal and
EV demands are expected to increase in the coming years. Puma’s
subsidiary will be well positioned and ready for any opportunity”
added Marcel Robillard.
The newly created strategic advisory board and
current management and consultants will evaluate different
scenarios to generate maximum value for Puma’s shareholders in
light of the current reorganization of Puma’s base metals assets.
The reorganization of the copper assets will be effective on August
31,2020. The main copper assets held by the wholly-owned Murray
Brook Minerals are as follows:
CHESTER PROJECT OPTION
The Chester Deposit property is known to contain
copper deposits containing three (3) zones; the Central Zone, the
East Zone, and the West Zone (Copper Stringer) all located near the
surface. Only the West Zone was included in the NI 43-101 resources
calculation dated 2008 and updated in 2014. The copper deposit has
measured and indicated resources of 1,400,000 tonnes grading 1.38%
Cu and 3.5 g/t Ag and inferred resources of 2,089,000 tonnes
grading 1.26% Cu (assayed for Cu only) as reported in the NI 43-101
Technical Report entitled “Technical Report - Chester Copper
Property New Brunswick Canada” (effective March 07, 2014) prepared
by Robert C. Sim, P. Geo., for Explor Resources and filed on
www.sedar.com.
Previous operators at Chester Deposit reported
historical resources totalling 16.8 Mt at 0.76 % Cu divided in
three zones* :
- East Zone*: 0.5 Mt of massive and disseminated sulphide grading
0.78%Cu, 0.36% Pb and 1.14% Zn.
- Central Zone*: 1.1 Mt of massive sulphide grading 0.47%Cu,
0.90% Pb and 2.22% Zn.
- West Zone*: 15.2 Mt of copper stringers grading 0.78% Cu.
*Puma is not treating the “historical resources
estimate” as a “current resources estimate” or “mineral reserves”,
as it has not taken steps to identify what work needs to be done to
verify, upgrade or re-classify the “historical resources estimate”
using a qualified person from Puma or independent third party.
Significant previous drill results at Chester
property
West Zone
(Surface to 50m) |
Central Zone
(Surface to 50m) |
|
|
4.8% Cu over 20.3 meters |
10.8% Zn + 4.5% Pb over 5.6 meters |
3.4% Cu over 25.0 meters |
7.4% Zn + 2.3% Pb over 6.1 meters |
6.0% Cu over 13.1 meters |
8.0% Zn + 3.9% Pb over 7.0 meters |
8.0% Cu over 5.2 meters |
8.5% Zn + 4.0% Pb over 7.9 meters |
4.9% Cu over 14.2 meters |
7.0% Zn + 2.6% Pb over 15.6 meters |
|
|
TURGEON PROJECT
The Company holds a 100% interest in the Turgeon
property consisting of 31 claims over a total surface area of 6.7
km2. The property is located 5 km south of the Belledune deep water
port and is accessible by road all year long and is crossed by an
electrical transport line.
The drilling done in 1983 by Esso Minerals led
to the identification of an historical resource of 1.5 to 2.0
million tons with a grade of 1.5% Cu and 4% Zn. The historical
resource was estimated only for the Powerline and Zinc Zone
deposit. Since the beginning of work in 1958, about 100 holes have
been drilled on the deposit resulting in more than 25,000 meters of
core. Puma is not treating the “historical resources estimate” as a
“current resources estimate” or “mineral reserves”, as it has not
taken steps to identify what work needs to be done to verify,
upgrade or re-classify the “historical resources estimate” using a
qualified person from Puma or independent third party.
In late-2013, The Dragon Zone was discovered by
Puma Exploration, The zone is located approximately 200 meters
south of the main Powerline and Zinc Zones who represent typical
VMS mineralised lenses. Drillhole FT13-13 intersected 4 meters of
massive sulphides grading 1.01% Cu and 0.78% Zn. The autumn 2014
drill program included a massive sulphide intercept grading 5.66%
Zn, 0.38% Cu and 2.3 g/t Ag over 6.8 metres starting downhole at
219.1 meters and including 10.05% Zn and 0.23% Cu over 2.7 metres.
(Drillhole FT14-05).
Significant previous drill results at Turgeon
property
Power Line (Cu
Stockwerk) |
Zinc Zone
(Massive Sulphide) |
|
|
3.5% Cu over 11.5 m |
1.1% Cu + 9.2% Zn over 7.9 m |
7.9% Cu over 7.5 m |
0.8% Cu + 12.4% Zn over 8.7 m |
2.2% Cu over 27.3m |
2.1% Cu + 1.9% Zn over 8.3m |
2.3% Cu over 32.6 m |
1.0% Cu + 2.7% Zn over 72.2 m |
4.4% Cu over 17.2m |
1.9% Cu + 5.0% Zn over 12.3m |
10.0% Cu over 7.0m |
1.1% Cu + 4.7% Zn over 25.1m |
|
|
LEGACY PROJECT
The Legacy copper project consists of two (2)
block of claims which cover an area of about 499.4 ha and are
situated in the County of Restigouche, Province of New Brunswick,
Canada. The project occurs approximately 100 km west of Bathurst
and approximately 40 km from Saint Quentin.
The Legacy Project includes the Legacy deposit,
two main prospects (Hornfels Zone and the J.J. Gold Zone) and
numerous geophysical targets. The drilling and resource model
suggest that the mineralisation continues with depth and that
additional tonnage could be delineated with additional drilling.
Mineralisation is primarily hosted by silicified calcareous
argillite and, to a lesser extent, in skarnified beds and irregular
zones within the argillite. The skarns are erratically distributed,
but usually occur in proximity to felsic dykes which are generally
only weakly mineralised.
Historical Resource of 1,040,000 tonnes of 0.74%
Cu and 5.15 g/t Ag was estimated in 2015 by SKR Consulting and
released as “Independent Technical Report for the Legacy Project,
Restigouche County, New Brunswick, Canada” with the effective date
of June 22, 2015. Puma is not treating the “historical resources
estimate” as a “current resources estimate” or “mineral reserves”,
as it has not taken steps to identify what work needs to be done to
verify, upgrade or re-classify the “historical resources estimate”
using a qualified person from Puma or independent third party.
This copper mineralization is contained in
three, steeply dipping mineralized zones varying from 1.5 m to
12.20 m in width.The steeply dipping zones are confined along
strike with a plunge to the NNE of about 50˚. Therefore, they have
a pipe-like shape.
BRUNSWICK CARDS PROJECT
To complete its impressive landholdings of
advanced projects to be held by Murray Brook Minerals, Puma
executed 2 distincts option agreements with a prospector and a
private company to secure first priority grassroots targets
generated using CARDS system developed by Windfall Geotek
(WIN-TSXV). The new properties totalling 101 claims units are
located north of the Chester Project and South-East of the East
Steel past operating mine. Also, Puma added by staking 63 new
claims units in the area to cover favourable geology. These
properties will be also transferred into Murray Brook Minerals.
Terms of the option agreements
Puma may acquire a 100-per-cent undivided
ownership interest in the two (2) distincts properties; Miramichi
CARDS and Sevolgle CARDS according to the following terms to each
vendor:
Issuing a cumulative amount of 500,000 shares of
Puma and $75,000 cash payments to the owners, according to the
following schedule:
- 500,000 shares and $25,000 cash subsequent to signing of the
agreement,
- $25,000 cash on or before the first anniversary date of the
agreement, and
- $25,000 cash on or before the second anniversary date of the
agreement.
The owners will retain a two percent net smelter
return royalty on any saleable production from the property. Fifty
percent of the NSR royalty (that is, one percent) may be purchased
by Puma for $1-million. Puma retains a right of first refusal on
the remaining one percent NSR royalty that is held by the owners.
The transaction is subject to the TSX Venture Exchange
approval.
WARRANTS REPRICING
Following Puma’s announcement made on August 4,
2020, about the repricing of certain warrants, and the initial
review by the TSX Venture Exchange. The company intends to reprice
6,185,478 warrants to $0.20 according the certain modifications
requested by the exchange as set out below.
Under the terms of the December 2018 financing,
638,000 warrants were issued at $1.00 (post-consolidation) with an
expiry date of December 31, 2020. The company intends to reprice
these warrants to $0.20. In accordance with the TSX Venture
Exchange Policy 4.1 (section 3.3a) ii) and e)), the warrants will
be subject to an acceleration clause: “should the closing price of
the common shares of the Company on the TSX Venture Exchange be
$0.25 or higher for ten (10) consecutive trading days, the Company
must accelerate the expiry of the Warrants to the date that is 30
days from the date of the issuance of a news release by the Company
announcing the exercise of the acceleration right.” The Company has
received the consent of the warrants holders to proceed with the
proposed modification.
Under the terms of the September 2019 financing,
4,366,450 warrants were issued at $0.50 (post-consolidation) with
an expiry date of September 27, 2023. The Company intends to
reprice these warrants to $0.20. In accordance with the TSX Venture
Exchange Policy 4.1 (section 3.3d) and N1, the Warrants held by
insiders (13.69%) can’t exceeded 10% and thus; 4,204,978 warrants
will be repriced to $0.20 and 161,472 warrants held by the insider
will keep the initial price of $0.50 (post-consolidation). The
expiry date remains the same as September 27, 2023.
Under the terms of the December 2019 financing,
1,342,500 warrants were issued at $0.35 expiring in December 2021.
The Company will now proceed to reprice these warrants to $0.20 as
no comment was received for these warrants.
QUALIFIED PERSONS
Marcel Robillard, PGeo, qualified person as
defined by Canadian National Instrument 43-101 standards, has
reviewed and approved the geological information reported in this
news release. 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.
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. Puma is currently focusing his field work
on its flagship TRIPLE FAULT GOLD PROJECT in New Brunswick. Great
efforts will be made by the Company in the coming years to deploy
its DEAR strategy (Development, Exploration,
Acquisition and Royalties) in order to generate maximum value for
shareholders with low shares dilution.
You can visit us on Facebook / Twitter /
LinkedInLearn more by consulting www.pumaexploration.com for
further information on Puma.Marcel Robillard, President
(418) 724-0901
president@explorationpuma.com
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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e86c9724-f27e-4ea9-8342-1cfa3ee39124
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