Puma Exploration Secures 70% Stake in McKenzie Gold Project

Deal News | Jan 17, 2025 | Globenewswire

Puma Exploration Inc., a Canadian mineral exploration company, has successfully finalized agreements with NB Gold Inc. and Comet Lithium Corporation concerning the McKenzie Gold Project in New Brunswick, Canada. The McKenzie site, located 7 km from Puma’s flagship Williams Brook Gold Project, offers significant strategic benefits through its outstanding gold occurrences and proximity to Puma’s operations. In securing an initial 70% stake, Puma executed several transactions: issuing 2.2 million shares to NB Gold, 450,000 shares to Comet, and a cash payment of $20,000 to NB Gold. Comet retains a 2% net smelter return royalty, which Puma has the option to purchase. NB Gold holds a 30% interest that remains free-carried until Puma invests $2 million in exploration. The acquisition enhances Puma’s already extensive portfolio in New Brunswick, promising further exploration along the Rocky Brook Millstream Fault, a region noteworthy for gold deposition. Puma’s DEAR model (Discovery, Exploration, Acquisition, and Royalties) underscores its commitment to maximizing shareholder value through this transaction.

Sectors

Mining and Exploration
Financial Services

Geography

Canada – The operations and agreements discussed in the article are based in Canada, where Puma Exploration and its projects are located.
New Brunswick – New Brunswick is the specific region in Canada where Puma Exploration's assets, including the McKenzie and Williams Brook Gold Projects, are situated.

Industry

Mining and Exploration – The article pertains to the mining and exploration of gold, which is a key focus of Puma Exploration Inc. and relevant to its acquisitions and strategic growth in New Brunswick.
Financial Services – The transactions include financial components like cash payments and issuance of shares, relevant to the execution of mining rights acquisition and royalty agreements.

Financials

$20,000 – Cash payment made by Puma Exploration to NB Gold as part of the transaction to acquire a stake in the McKenzie Gold Project.
2.2 million shares – Shares issued by Puma Exploration to NB Gold as part of the acquisition deal.
450,000 shares – Shares issued by Puma Exploration to Comet Lithium as part of the transaction.
$2,000,000 – Exploration expenditure threshold Puma must reach, after which NB Gold's interest is no longer free-carried.
$500,000 – Cash payment Puma can make to purchase one-half of the net smelter return royalty from Comet.

Participants

Name	Role	Type	Description
Puma Exploration Inc.	Acquirer	Company	A Canadian mineral exploration company focused on precious metals projects, primarily in New Brunswick.
NB Gold Inc.	Seller	Company	Participated in the transaction by receiving shares and cash from Puma Exploration for the McKenzie Gold Project.
Comet Lithium Corporation	Other Company	Company	Retains a royalty interest in the transaction and received shares from Puma Exploration.
Marcel Robillard	President and CEO	Person	President and CEO of Puma Exploration, involved in the preparation and announcement of the transaction.