RIMOUSKI, October 10, 2019 – Puma Exploration Inc. (TSXV: PUMA) (the “Company” or “Puma”) is pleased to announce an amendment to the October 5, 2016 Agreement (the” Agreement”) with BWR Exploration Inc. (TSXV: BWR) in regards of the Little Stull Lake Gold Project.
Puma and BWR have agreed to extend the minimum exploration expenditure of $1.5M for one year, until October 5th, 2020. In exchange of the extension given, BWR shall issue to Puma 1,000,000 shares of the Company on or before November 4, 2019.
‘’This agreement is an integral part of our newly development plan and strategy to create value to shareholders (DEAR). Following the current amendment, Puma will hold 5,750,000 shares of BWR Exploration Inc. (TSXV: BWR) which will represent an ownership of about 8% of the Company. BWR is exploring for Gold in Manitoba, which give Puma an indirect exposure for the gold recent renewed interest’’ Notes Marcel Robillard, President and CEO of Puma Exploration.
DEAR
Within the current reorganisation of the company, Puma has defined a four-part strategy for 2019-20 and beyond: Development, Exploration, Acquisition and Royalties/Ownership (DEAR). Each of the strands is aimed to generate value for shareholders.
The Development at the Murray Brook Deposit of which the gossan and the oxide Zones will be investigated in terms of the economics and upside potential of the precious metal contents and recovery with the goal of converting the surface zones material that was categorized as waste to potential mineable ore.
The Exploration at our advanced current projects Murray Brook Deposit and Chester Property to discover new satellite and contiguous deposits with our drill-ready targets. The goal is to define the best 10 drilling targets at Murray Brook and Chester.
The Acquisition of prospective new properties using our expertise and knowledge developed since the last 15 years of exploration in New Brunswick to offer a variety of different metals exposure and potentially make new discoveries.
The Royalties and ownership gained through the sell-off of non-core assets to third parties represent a potential major financial upside within dilution. Currently, Puma holds 14,200,000 shares (48%) of Targets Minerals Inc. (1% NSR on Nicholas-Denys) and 23,644,165 shares (100%) of Murray Brook Minerals Inc. (0.67% NSR on Murray Brook) and will hold 5,750,000 shares (8%) of BWR Exploration Inc. (1% NSR on Little Stull Lake).
DETAILS OF THE AMENDED AGREEMENT
The Little Stull Lake Property Agreement stipulates that if BWR does not incur exploration expenditures for an amount of at least $1,500,000 on the Little Stull Lake Property by October 5, 2019, BWR is required to issue within 30 days of October 5, 2019, 5,000,000 of the Company’s shares to Puma. BWR has advised Puma that it has not to date expended the $1,500,000 required pursuant to Section 2(e) of the existing Agreement.
Consequently, BWR and Puma have agreed to amend the Agreement as follows:
- BWR shall issue to Puma 1,000,000 shares of the Company on or before November 4, 2019
- the Agreement is amended as follows:
- subparagraph ii) of Section 2(b) is deleted, and
- paragraph (e) of Section 2 of the Agreement is amended as follows:
- the period of “36 months” is replaced by a period of “48 months”, thereby extending the time period in which the Company must occur expenditures to the Little Stull Lake Property in Manitoba, and
- the amount of “5,000,000” shares is replaced by “4,000,000” in order to maintain the total share allotment of Puma given that 1,000,000 shares of the Company are being transferred to Puma on or before November 4, 2019.
All other terms of the Agreement continue in full force and effect, unamended as of the date hereof. Capitalized terms not defined in this letter have the respective meanings accorded to them in the Agreement.
ABOUT PUMA EXPLORATION
Puma is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. While the priority remains to secure and finalize the acquisition of the Murray Brook project, the emphasis will be directed towards the exploration of the new targets identified around the existing deposits at Murray Brook and Chester, but also within underexplored targets located on both favourable horizons within the properties.
The Company’s objective for 2019-20 also includes selling undervalued assets as to increase the value of the company to its shareholders. Puma holds 14,200,000 shares of Targets Minerals, exploring for precious metals (Gold-Silver) in New Brunswick and 4,750,000 shares of BWR Resources exploring for gold in Manitoba, and also an option agreement with Rio Tinto for the Red Brook Project in New Brunswick.
QUALIFIED PERSONS AND QC/AC
Technical information provided in this news release was prepared and reviewed by Marcel Robillard, P.Geo., President of Puma Exploration, qualified person as defined by NI 43-101. 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. Robillard is not independent of the Company, as is officer and shareholders thereof.
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Marcel Robillard, President
(418) 724-0901
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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.