Puma Exploration Closes C$5,000,000 Brokered Private Placement
December 17 2021 - 9:14AM
Puma Exploration Inc. (TSXV: PUMA) (the "Company" or "Puma")
announces that it has completed its previously announced brokered
private placement. Pursuant to the Offering, a total of 10,000,000
flow-through common shares (the "Flow-Through Shares") of the
Company were sold at a price of C$0.50 per Flow-Through Share (the
"Offer Price") for total gross proceeds of C$5,000,000 (the
"Offering"). Desjardins Capital Markets acted as sole bookrunner
and agent (the "Agent").
"I am so proud of Puma’s excellent and dedicated
work on the Williams Brook property this year. Our discovery hole
at the Lynx gold zone of the O'Neil Gold Trend was outstanding. I
expect to continue to provide positive results in 2022 following
this successful C$5.0 million raise where proceeds will be
allocated to pursuing further exploratory work. With a robust
exploration budget, Puma is set to advance the Williams Brook
Project in 2022 with the launch of a 10,000-meter drilling campaign
early in the new year," notes Marcel Robillard, President and CEO
of Puma Exploration. "I want to personally thank Desjardins Capital
Markets for their support and assistance in successfully closing
our private placement. Their commitment to Puma has been
exceptional," added Marcel Robillard.
The gross proceeds of the Flow-Through shares
sold under the Offering will be used to explore Puma's Williams
Brook Gold project located in New Brunswick. The Company agrees
that an amount equal to the gross proceeds received by the Company
will be used to incur Canadian Exploration Expenses (CEE), which
will qualify as "flow-through mining expenditures", (each as
defined in the Income Tax Act (Canada) (the "Tax Act") and referred
to as a "Qualifying Expenditures") related to the exploration
program of the Company. The Company will renounce such Qualifying
Expenditures with an effective date of no later than December 31st,
2021. The Flow-Through Shares sold under the Offering will be
subject to a statutory hold period lasting four months and one day
following December 17th, 2021.
One insider of the Company acquired 40,000
Flow-Through Shares pursuant to the Offering. Such participation is
considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 ("MI 61-101").
The Company is relying on the exemptions from
the valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as
the fair market value of the participation in the Offering by
insiders does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61-101. The Company
did not file a material change report more than 21 days before the
expected closing of the Offering, as the details of the Offering
were not settled until shortly prior to closing and the Company
wished to close on an expedited basis for sound business reasons
and in a timeframe consistent with usual market practices for
transactions of this nature.
As consideration for its services in connection
with the Offering, the Company has paid the Agent a cash commission
of 7.0% of the gross proceeds of the Offering and issued to the
Agent broker warrants ("Broker Warrants") equal to 5.0% of the
number of Flow-Through Shares sold under the Offering. Each Broker
Warrant will entitle the holder thereof to acquire one common share
of the Company at the Offer Price for a period of 24 months from
the Closing Date.
The TSX Venture Exchange has conditionally
approved the issuance of securities in the Offering, but the
issuance remains subject to their final approval.
The securities described herein 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 accordingly, may not be offered or sold within
the United States except in compliance with the registration
requirements of the U.S. Securities Act and applicable state
securities requirements or pursuant to exemptions therefrom. This
press release does not constitute an offer to sell or a
solicitation to buy any securities in any jurisdiction where such
offer, sale or solicitation is not permitted.
ABOUT PUMA EXPLORATION
Puma Exploration is a Canadian-based gold
exploration company with early-stage precious metals projects in
the Famous Bathurst Mining Camp (BMC) in New Brunswick, Canada. The
Company is committed to its DEAR strategy
(Development, Exploration, Acquisition and Royalties) to generate
maximum value for shareholders with low share-dilution.
Connect with us
on Facebook / Twitter / LinkedInVisit
www.explorationpuma.com for more information or contact:
Marcel Robillard,President,
(418) 750-8510; president@explorationpuma.com
Mia BoiridyHead of Investor
Relations and Corporate Development, (250) 575-3305;
mboiridy@explorationpuma.com
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.
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.
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