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Puma Exploration expands landholdings in New Brunswick

Mining
TSXV:PUMA
27 May 2020 11:35 (EDT)

Puma Exploration (TSXV:PUMA) has acquired 58 additional mining claims surrounding its New Brunswick properties.

The company staked out 44 of the claims within its William Brook South property and closed a purchase to acquire the other 14.

The purchase was for the McCormack Brook South property, which was acquired from a local prospector and ties together other Puma properties.

Through deal, Puma issued a 100,000 shares to the prospector, along with a C$5,000 cash payment in exchange for 100 per cent of the property.

Both properties are now connected to The Portage and Jonpol Gold properties, which are 100 per cent owned by Puma and covering an area of significant geophysical anomaly, 

There are some further bonuses built into the deal, including a $25,000 payment once a positive preliminary economic assessment is completed, a $50,000 payment once a feasibility study is complete. 

The option also includes a one-time payment of $100,000 if the site reaches commercial production.

Furthermore, Puma announced a $500,000 share offer, issuing 10 million units at five cents per share.

That represents a fairly significant dilution, as the company only has a 30 million share float.

A 33 per cent dilution for $500,000 is significant for shareholders, but interestingly the price has not moved today.

The company has stated the share offer is for working capital and to maintain and preserve existing operations, activities and assets.

Puma Exploration (PUMA) is in the grey at 6.5 cents per share at 11:15 pm EDT. 

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