PRESS
RELEASE
Puma Exploration Inc. Announces a $6 Million
Financing
Rimouski,
Quebec, November 27, 2007 ??? Puma Exploration Inc. (PUM - TSXV) (the
???Corporation??? or ???Puma???) is pleased to announce that it has entered into an
agreement with Northern Securities Inc. to issue and sell, on a best effort
basis, up to 5,454,545 flow-through shares at an issue price of $0.55 per
share, resulting in gross proceeds to Puma of up to $3 million and up to
6,666,667 non flow-through units at an issue price of $0.45 per unit, resulting
in additional gross proceeds to Puma of up to $3 million (the ???Offering???). ??
Each non
flow-through unit will consist of one common share of the Corporation and one
common share purchase warrant (the ???Warrant???). Each Warrant will entitle the holder
thereof to purchase one additional common share of the Corporation for a period
of 24 months from the date of issuance, at an exercise price of $0.55 per
share.??
Notwithstanding the foregoing terms, if the common shares of the Corporation have a
closing price on the TSX Venture Exchange equal to or greater than $1.00 per
share, at any time after the expiry of the statutory hold period, for a minimum
of ten (10) consecutive trading days, Puma shall have the option to provide
warrant holders with a written notice advising them of the following: within ten (10) business
days from receipt of the notice, the warrant holder will be able to exercise
the warrants at the existing exercise price of $0.55 per share; or failing such
exercise within ten (10) business days of receipt of the notice, the exercise price of the
Warrants will be automatically adjusted to $0.80 per share for the remainder of
the term of the Warrants.
In addition, the Corporation has granted to Northern
Securities Inc. an option exercisable at any time prior to 24 hours prior to
the closing of the Offering to increase the size of the financing by up to 50%
under the same proportion, terms and conditions and price as the Offering (the
???Broker???s Option???).
In connection
with the Offering, the Corporation will pay to Northern Securities Inc. a cash
commission of 8% of
the aggregate gross proceeds of the Offering including any proceeds raised by
the Corporation pursuant to the exercise of the Broker???s Option.?? Northern
Securities Inc. will also receive a number of broker warrants equal to 10% of the aggregate number
of flow-through shares and non flow-through units sold pursuant to the Offering
including any flow-through shares and non flow???through shares sold pursuant to
the Broker???s Option.??
All securities
issued in connection with the Offering will be subject to a four-month hold
period from the closing date. The Offering is subject to the approval of the
regulatory authorities, including the TSX Venture Exchange.
The investment
proceeds will be used for the exploration and development of the Nicholas-Denys
project in New Brunswick
and exploration for the Auriferous project in Little Stull Lake, Manitoba.
The
Corporation will use $1.5 million of the gross proceeds of the Offering for the
development of the Hach?? Lens on the Nicholas-Denys project. The planned work includes a feasibility
study, the design of the open pit and the impact studies needed to obtain the
mining lease as well as all of the preparatory work.
Out of an
exploration budget of $3 million, $2.5 million will be used for the exploration
and surface definition of other ore lenses on the Nicholas-Denys property,
namely the PineTree, Shaft and Henry lenses. A budget of approximately $500,000 will
also be applied to Phase 2 of the drilling work in progress on the Little Stull
Lake Auriferous property in Manitoba.
About Puma Exploration Inc.
Puma
Exploration Inc. is a public mineral exploration corporation (PUM-TSXV)
involved in the discovery, exploration and development of mining projects in Canada. Puma???s efforts are focused on its two major
advanced projects: the polymetallic project (Ag-Pb-Zn-Au) on the Nicholas-Denys
property in New Brunswick
and the Auriferous project (Au) in Little Stull Lake, Manitoba.
The TSX Venture Stock Exchange
disclaims any responsibility regarding the veracity and accuracy of this press
release.
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For information:
Rimouski
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Montreal
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Andr?? Proulx
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Christian Guilbaud
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President
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Investor
Relations
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(418) 724-0901
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(514)
813-7862
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president@explorationpuma.com
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cguilbaud@explorationpuma.com
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