Puma Exploration and El Nino Ventures Terminate the Murray Brook Purchase Agreement

RIMOUSKI, Quebec, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Puma Exploration Inc., PUMA-TSXV, (“Puma”) and El Nino Ventures, ELN-TSXV, (‘’El Nino’’) have terminated the amended and restated asset purchase agreement signed on October 5, 2016, as amended thereafter. Pursuant to the last amendment signed by Puma and El Nino, Puma had until July 31, 2020, to proceed with the final $1-million cash consideration or to agree on an alternative agreement to deal with the acquisition of the Project. Puma will execute the requirements of the termination according to the amended agreement (see news release 09/07/2019). Puma retains no interest in the Murray Brook Deposit nor in the Murray Brook East property.

ADDITIONAL CORPORATE UPDATE
PUMA EXPLORATION CLOSES $500,000 PRIVATE PLACEMENT
Puma has closed a fully-subscribed private placement for an amount of $500,000. The Company issued 5 million units (“Units”) at the price of $0.10 per Unit. Each Unit is comprised of one (1) flow-through common share (a “Flow-Through Common Share”) and one half (1/2) common share purchase warrant (each whole warrant, a “Warrant”), each Warrant entitling the holder to purchase an additional common share (a “Warrant Share”) at an exercise price of $0.15 per Warrant Share for a period of twenty-four (24) months following the Closing Date.

In connection with the private placement, the Company has paid cash finders' fees in an amount of $32,560 and issued 325,600 finders' warrants, each entitling the holder to acquire one additional common share of Puma at a price of $0.10 for 24 months. All securities issued to purchasers and finders under the offering are subject to a four-month hold period from the date of issuance of the securities, pursuant to applicable securities legislation and the policies of the TSX Venture Exchange. The placement has received the conditional approval of the TSX Venture Exchange. The Company will use the proceeds of the offering to explore its current flagship Triple Fault Gold Project.

Two (2) insiders of the Company participated in the placement for aggregate gross proceeds of $25,000. The insiders purchased units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements pursuant to sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, on the basis that the fair market value of such participation or the consideration paid by such insiders does not exceed 25 per cent of the market capitalization of the Company.