- Puma Exploration Corp. (PUMA) has announced its plans to monetize all of its copper projects into a new company, Melius Capital 3 Corp.
- The new company will have the option to acquire Puma’s copper projects in New Brunswick
- This will allow Puma to focus its efforts on its flagship Williams Brook Gold Project
- The transaction is subject to conditions and the approval of the TSXV
- Puma Exploration Inc. (PUMA) opened trading at $0.34 per share
Puma Exploration Corp. (PUMA) has announced its plans to monetize all of its copper projects into a new company, Melius Capital 3 Corp.
The formation of the new company will allow Puma to focus its efforts on its flagship Williams Brook Gold Project in New Brunswick. The new company, in turn, will have the option to acquire Puma’s copper projects in the province, including the Chester, Turgeon, Legacy, Murray Brook West, and Brunswick Cards projects.
In consideration for the projects, Melius will pay a combination cash and shares worth $3.05 million to Puma. The new company plans to list its common shares on the CSE or other Canadian stock exchange.
Marcel Robillard, chairman and CEO of Puma, commented on the announcement.
“With this transaction, Melius is acquiring a very promising exploration portfolio located in the famous Bathurst Mining Camp district,” he remarked. “Creating a standalone copper-focused company should give these projects the visibility and attention they deserve.”
“Puma shareholders will now gain a more focused exposure to rising copper prices,” he added, “while Puma offers substantial leverage to gold, as we are aggressively exploring the Williams Brook Gold Property.”
Other considerations in the proposed transaction include:
- Puma will have the right to nominate one individual to the board of directors of Melius;
- Melius and Puma will form a technical committee with two representatives each;
- Melius will be the operator of the projects, with Geominex Inc. providing the technical field work services for Melius and Puma Exploration;
- Melius will be responsible to keep the mineral claims in good standing; and
- Puma will retain a 2% NSR royalty on three New Brunswick claim properties, which Melius will have the option to buy back
The transaction is subject to conditions and the approval of the TSXV.
Puma Exploration is a Canadian junior mining company that acquires, explores, and develops mining properties.
Puma Exploration Inc. (PUMA) opened trading at $0.34 per share.
