Puma Exploration Updates on Copper Transaction With Melius Metals
26 November 2021 - 1:47AM
Puma Exploration Inc., PUMA-TSXV, (the “Company” or “Puma”) is
pleased to report progress on the transaction with Melius Metals
Corp. (“Melius”). As was stated in the press release of July 6,
2021, the main objective of the transaction is to unlock value from
its copper property portfolio through Melius’ option to acquire all
Puma’s copper exploration and development projects.
TRANSACTION SUMMARYPuma granted
to Melius the option to acquire 100% in its Copper Projects in
consideration of $3.5M payable by the issuance of an initial 12M
Melius shares of which up-to 6M will be distributed to Puma's
shareholders in Q1-2022 . The remaining $2.3M is payable in cash or
in Melius shares over a period of 3 years. Puma's commitments for
the Chester Property was also assumed by Melius (see PR
2021-07-06). As of November 24th,2021, the Chester option has been
executed and the mining claims have been transferred to Puma.
PROGRESS ACHIEVED TO DATE
- Melius appointed Mr. Simon Quick as
Chief Executive Officer (CEO).
- Melius completed Qualifying
Technical Reports (NI 43-101) on Chester and Turgeon as required
for public listing purposes.
- Melius closed private placement
financings for a total of $1,500,000.
- Launch of a 2,000 meters drilling
program on Chester, execution of a final $100,000 cash payment and
acquisition by Puma of a 100% interest on Chester.
- At Puma’s Annual and Special
Meeting of Shareholders, approval of resolutions approving the sale
of the copper assets reduction of stated capital.
Considering all the achievements that Melius has
made so far, and highlighted above, Puma has agreed to extend the
Satisfaction Date from October 31, 2021 to January 31, 2022 to file
a preliminary prospectus and the current deadline to be listed on a
Canadian Exchange to be extended to April 30, 2022 from March 1,
2022.Currently, Melius is finalizing the audited financial
statement to be included in the preliminary prospectus and is
proceeding with an additional round of financing which is expected
to close in the next few weeks. Melius is currently preparing its
preliminary prospectus with the intention of listing shares on the
Canadian Stock Exchange (“CSE”).
As a result of this additional round of
financing by Melius, Puma intends to hold a Special Meeting of
Shareholders in January 2022 to seek shareholders’ approval for an
increase in reduction of stated capital already approved at the
previously held Annual and Special Meeting, from $600,000 to a
maximum of $2,100,000.
The objective is to reduce any potential fiscal
impact on Puma’s shareholders considering anticipated changes to
the listing price of Melius shares. More details about the date of
the Special Meeting and the record date will be provided
shortly.
APPOINTMENT OF MR. SIMON QUICK AS CHIEF
EXECUTIVE OFFICER OF MELIUS
Mr. Quick has more than 12 years as a
well-regarded mining leader, with a track record spanning the USA,
Mexico, Argentina, and Canada. His specific experience includes
early stage permitting, project development through to design
engineering, and construction. Mr. Quick joins Melius from McEwen
Mining Inc. where he was Vice President of Projects. He has an
honours degree in Economics from Bishop’s University and an
Executive MBA from the Kellogg School of Management at Northwestern
University.
EXPLORATION UPDATE AT CHESTER COPPER
DEPOSIT
The new drilling program at Chester has
commenced and consists of approximately 40 drillholes totaling
approximately 2,000 meters (see Figure 1). The Chester copper
deposit contains three known zones; the Central Zone, the East
Zone, and the West Zone (Copper Stringer) which are all located
near surface.
There are three strategic objectives for
this drilling campaign:1) Validate historical resource and
geological model for the three primary zones, Central, East, and
West (Copper Stringer), all located near surface.2) Test resource
gaps between the Central and East Zone.3) Each hole will also test
for presence of gold and silver mineralization given historical
drilling did not assay for these minerals.
Significant previous drill results at
Chester:
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 |
Figure 1: Current Drilling Operation at
Chester Copper Deposit is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cc9b03ad-9d44-4e3b-b1a3-7437f3415f42
QUALIFIED PERSONDominique
Gagné, PGeo, independent 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. Mr.
Gagné is independent of the Company.
ABOUT MELIUS METALS CORP.
Melius Metals Corp. (“Melius” or “the Company”),
a new Copper exploration and development story focused on
well-known and past-producing Bathurst Mining Camp in New
Brunswick.For further information on Melius, please contact Simon
Quick, (905) 220 6661; simon@meliusmetals.com.
ABOUT PUMA EXPLORATIONPuma
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. 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.explorationpuma.com for
further information on Puma.Marcel Robillard, President, (418)
750-8510; president@explorationpuma.comSimon Quick, CEO, (905)
220-6661; simon@meliusmetals.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.
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