Puma arranges $1.6-million private placement
2021-08-05 15:42 ET - News Release
Mr. Marcel Robillard reports
PUMA EXPLORATION ANNOUNCES $1.6 MILLION FINANCING LED BY A STRATEGIC INVESTMENT BY CRESCAT CAPITAL FOR $960,000
Puma Exploration Inc. has arranged a non-brokered private placement of $1.6-million. The company plans to issue up to five million units at a price of 32 cents per unit for gross proceeds of up to $1.6-million. Crescat Portfolio Management LLC (for itself and/or for accounts managed by Crescat Portfolio Management) has agreed to be the lead order by making a strategic investment of $960,000, representing 60 per cent of the proposed financing. In addition, Crescat requested and secured participation rights that provide for an option to participate in future financings.
Proceeds from this offering will be used to increase the current 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. "We are encouraged by the near-surface, high-grade gold that Puma is encountering in New Brunswick. We are excited to infuse capital to help the company with its goal of quintupling the planned metres of drilling this season," commented Kevin Smith, Crescat's chief investment officer.
Marcel Robillard, president and chief executive officer of Puma, commented: "We are extremely pleased to welcome Crescat as a significant strategic shareholder of the company as we continue to unlock the mineral potential of the Williams Brook gold project. The confidence Crescat and its world-renowned technical adviser, Dr. Quinton Hennigh, have shown in Puma is a vindication of our belief of the potential of the Williams Brook gold project. This financing will allow us to advance exploration more aggressively at our flagship project, which covers 27,000 hectares of favourable geological setting."
"Puma's Triple Fault gold project is a grassroots success in a prolific gold belt," commented Dr. Quinton Hennigh, technical adviser to Crescat Capital. "Newfoundland has become a hot bed of exploration over the past year, but the same geology continues into New Brunswick to the southwest. Puma has identified similar high-grade-gold mineralization to that seen in Newfoundland and has already identified multiple high-grade targets. Further prospecting is expected to generate more. We are very happy to join Puma as a shareholder at a time when they are beginning to drill test these exciting targets."
Each unit will comprise one common share of the company and one common share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of 50 cents for a period of 24 months. The company may pay finders' fees in relation to a portion of this offering. The offering and the payment of finders' fees are subject to the acceptance of the TSX Venture Exchange. The offering is fully subscribed, and it is expected that the closing will occur on or about Aug. 13, 2021. All securities issued pursuant to this offering and any shares issued pursuant to the exercise of warrants will be subject to a four-month hold period from the closing date.
About Puma Exploration Inc.
Puma Exploration is a Canadian-based mineral exploration company with precious metal and base metal projects in early to advanced stages located in the famous Bathurst mining camp, 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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