Puma Exploration closes $1.2-million private placement

Executive Summary

• Puma Exploration Inc. has closed a non-brokered private placement of flow-through units, raising gross proceeds of $1.2 million.
• The financing consists of 6 million flow-through units priced at $0.20 per unit, with net proceeds designated for eligible Canadian exploration expenses and flow-through mining expenditures to advance the McKenzie gold project and other assets in northern New Brunswick.
• The transaction includes the issuance of warrants exercisable at $0.25 per share until December 9, 2027, and involves insider participation and finder’s fees.

Key Details

• Transaction Structure: Non-brokered placement of 6,000,000 flow-through (FT) units.
• Price: $0.20 per FT unit.
• Gross Proceeds: $1,200,000.
• Unit Composition: Each FT unit comprises one flow-through share and one-half common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable to purchase one common share at an exercise price of $0.25 per share.
  • Expiry Date: December 9, 2027.
  • Acceleration Clause: The company may accelerate warrant expiry by providing 30 days' notice if the closing price of common shares on the TSX Venture Exchange is equal to or greater than $0.40 for 30 consecutive trading days. Notice can be provided after the statutory hold period and before expiry.
• Hold Period: All securities are subject to a hold period of four months and one day.
• Use of Proceeds: Net proceeds will be used to incur eligible Canadian exploration expenses and flow-through mining expenditures (renounced to purchasers) with an effective date no later than December 31, 2026. Funds will advance exploration of the McKenzie gold project and other assets in northern New Brunswick.
• Finder’s Fees:
  • Aggregate cash fees paid: $76,650.
  • Non-transferable finders' warrants issued: 383,250.
  • Finders' warrant terms: Same as investor warrants (exercise price $0.25, expiry Dec 9, 2027).
• Insider Participation:
  • Directors and insiders subscribed for 100,000 FT units.
  • Aggregate insider subscription amount: $20,000.
  • Transaction classified as a related party transaction under Multilateral Instrument 61-101.
  • Exempt from formal valuation and minority shareholder approval requirements as the fair market value of securities issued to interested parties did not exceed 25% of the company's market capitalization.

Notable Quotes

• "The content of this news release was prepared by Marcel Robillard, president, who supervised the preparation of the information that forms part of this news release."