Puma Exploration provides updates on the progress relating to its transaction with Melius Metals. As was mentioned in the press release of July 6, 2021, the key objective of the transaction is to expose value from its copper property portfolio via Melius’ option to purchase all copper exploration and development projects of Puma.
Puma allowed Melius the option to purchase 100% in its Copper Projects in consideration of $3.5M payable by the issuance of a preliminary 12M Melius shares of which up to 6M will be dispersed to Puma's shareholders in Q1-2022.
The outstanding $2.3M is payable in cash or in Melius shares spanning a period of 3 years. Puma's obligations for the Chester Property were also taken up by Melius (see PR 2021-07-06). As of November 24, 2021, the Chester option has been implemented and the mining claims have been moved to Puma.
Progress Achieved to Date
- Melius hired Mr. Simon Quick as Chief Executive Officer (CEO).
- Melius concluded Qualifying Technical Reports (NI 43-101) on Chester and Turgeon as needed for public listing purposes.
- Melius closed private placement financings for a maximum of $1,500,000.
- Initiation of a 2,000 m drilling project on Chester, execution of a final $100,000 cash payment, and acquisition by Puma of a 100% interest on Chester.
- At the Annual and Special Meeting of Shareholders of Puma, approval of resolutions accepting the sale of the copper assets reduction of stated capital.
Bearing in mind all the accomplishments that Melius has achieved thus far, and highlighted above, Puma has approved the extension of the Satisfaction Date from October 31, 2021, to January 31, 2022, to file an introductory prospectus and the present deadline to be registered on a Canadian Exchange to be extended to April 30, 2022, from March 1, 2022.
At present, Melius is concluding the audited financial statement to be added in the introductory prospectus and is carrying on with an extra round of financing which is projected to close in the following few weeks. Melius is now preparing its introductory prospectus with the purpose of listing shares on the Canadian Stock Exchange (“CSE”).
Owing to this extra round of financing by Melius, Puma plans to hold a Special Meeting of Shareholders in January 2022 to pursue shareholders’ approval for an increase in reduction of specified capital already approved at the earlier conducted Annual and Special Meeting, from $600,000 to a maximum of $2,100,000.
The aim is to diminish any potential fiscal impact on Puma’s shareholders bearing in mind estimated changes to the listing price of Melius shares. More particulars regarding the date of the Special Meeting and the record date will be stated soon.
Appointment of Mr. Simon Quick as Chief Executive Officer of Melius
Mr. Quick has over 12 years as a renowned mining leader, with a track record covering the United States, Argentina, Mexico, and Canada. His particular experience comprises early stage permitting, project expansion through to design engineering, and construction.
Mr. Quick becomes a part of Melius from McEwen Mining where he served as Vice President of Projects. He has an honors 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 begun and comprises about 40 drillholes totaling around 2,000 m. The Chester copper deposit comprises three established zones; the East Zone, the Central Zone, and the West Zone (Copper Stringer) which are all found near surface.
There are three premeditated objectives for this drilling project:
1) Confirm historical resource and geological model for the three main zones, East, Central, and West (Copper Stringer), all found near surface.
2) Test resource gaps between the East and Central Zone.
3) Each hole will also test for the occurrence of gold and silver mineralization as past drilling did not assay for these minerals.
Noteworthy preceding drill results at Chester:
|West Zone (Surface to 50 m)
||Central Zone (Surface to 50 m)
|4.8% Cu over 20.3 m
||10.8% Zn + 4.5% Pb over 5.6 m
|3.4% Cu over 25.0 m
||7.4% Zn + 2.3% Pb over 6.1 m
|6.0% Cu over 13.1 m
||8.0% Zn + 3.9% Pb over 7.0 m
|8.0% Cu over 5.2 m
||8.5% Zn + 4.0% Pb over 7.9 m
|4.9% Cu over 14.2 m
||7.0% Zn + 2.6% Pb over 15.6 m
Dominique Gagné, PGeo, an autonomous qualified person as stipulated by the Canadian National Instrument 43-101 standards, has appraised and approved the geological data published in this article. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release. Mr. Gagné is autonomous of Puma Exploration.