Puma closes $2-million private placement with Kinross

Executive Summary

• Puma Exploration Inc. has closed a $2 million private placement with Kinross Gold Corp., increasing Kinross's ownership stake in Puma.
• Kinross subscribed to 12.5 million units at a price of 16 cents per unit, exercising rights granted under an investor rights agreement dated October 23, 2024.
• The transaction increases Kinross's ownership from 9.1% to 14.8% (undiluted) and 17.4% (partially diluted), with rights to increase holdings up to 19.9% in future financings.

Key Details

• Transaction Structure: Private placement of 12.5 million units.
• Price: 16 cents per unit.
• Gross Proceeds: $2,000,000.
• Unit Composition: Each unit consists of one common share and one-half common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable to purchase one common share.
  • Exercise Price: 25 cents per share.
  • Expiry Date: December 24, 2027.
  • Acceleration Clause: Puma may accelerate warrant expiry 30 days after notice if the closing price on the TSX Venture Exchange is equal to or greater than 40 cents for 30 consecutive trading days. Notice may be provided after the statutory hold period and before expiry.
• Hold Period: All securities issued are subject to a hold period of four months and one day under applicable securities laws.
• Use of Proceeds: Exploration activities on Puma's projects (not optioned to Kinross) and general corporate and working capital requirements.
• Finders' Fees: None paid.
• Kinross Ownership Post-Transaction:
  • Common Shares: 29,550,577 shares.
  • Warrants: 6.25 million warrants.
  • Ownership Percentage: Increased from 9.1% to 14.8% (undiluted) and 17.4% (partially diluted).
• Future Rights: Under the Investor Rights Agreement (IRA), Kinross retains the right to participate in future equity financings to maintain its ownership percentage or increase its holding to up to 19.9% of total issued and outstanding common shares.
• Regulatory Filings: An early warning report was filed by Kinross and is available on Puma's SEDAR+ profile.

Notable Quotes

• No direct quotes from management were included in the provided text.