Puma Exploration Signs Red Brook Property Agreement With Rio Tinto Exploration Canada
RIMOUSKI, Quebec, March 08, 2018 (GLOBE NEWSWIRE) -- Puma Exploration Inc. (the “Company” or “PUMA”) (TSX-V:PUMA) is pleased to announce the signature of an Option Agreement with Rio Tinto Exploration Canada Inc. (“RTEC”) by which RTEC will purchase 100% undivided interest in the Red Brook project (“Project”).
Under the terms of the Option Agreement, Rio Tinto Exploration Canada shall have the right to elect to exercise the option and earn 100% undivided interest in the Project upon payment of $1,000,000 to PUMA over 5 years on the following terms:
- $120,000 within forty-five (45) days of execution of the Agreement (“Commitment”);
- $75,000 on or before first anniversary date;
- $75,000 on or before second anniversary date;
- $100,000 on or before third anniversary date;
- $200,000 on or before fourth anniversary date;
- $430,000 on or before fifth anniversary date;
RTEC may, at any time or from time to time, accelerate the payment of any or all of the Payment amounts above satisfaction of such Payment(s). RTEC will grant PUMA a 1% NSR on all metals on the Project. The Royalty is capped at $10,000,000. RTEC will retain a right of first refusal on the Royalty.
RTEC will satisfy the terms of the underlying agreement with a prospector (i.e., cash payments and exploration expenditures). At any time after satisfying the Commitment, RTEC may elect to terminate the Option Agreement with no interest earned and no further rights and obligations. All payments received by PUMA during the option are non-refundable. During the option period RTEC will have the exclusive exploration and development rights to the Project.
“We are delighted to welcome Rio Tinto Exploration Canada Inc. in New Brunswick and are confident that this collaboration is the first of a fruitful relationship between our companies that will generate new opportunities in the future” notes Marcel Robillard, President of Puma Exploration.
About Puma Exploration Inc.
Puma Exploration is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. The Company's major assets consist of an option to acquire 100% beneficial interest in the Murray Brook Property on which it has signed a Strategic Alliance LOI with Trevali Mining Corp., the Turgeon Zinc-Copper Project and the Nicholas-Denys Project located in New Brunswick as well as an equity interest in BWR Resources, Manitoba. Puma’s objective is to focus its exploration efforts in New Brunswick.
Qualified Persons and QC/AC
The content of this press release was prepared by Marcel Robillard, P.Geo., President and Dominique Gagné, P.Geo., Vice President Exploration of Puma Exploration, qualified persons as defined by NI 43-101, who supervised the preparation and technical information that forms the basis for this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Mr. Robillard and Mr. Gagné are not independent of the Company, as both are officers and shareholders thereof.
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Marcel Robillard, President
(418) 724-0901
president@explorationpuma.com
Forward-Looking Statements: This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Puma Exploration Inc. to be materially different from actual future results and achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, except as required by law. Puma Exploration undertakes no obligation to publicly update or revise any forward-looking statements. These risks and uncertainties are described in the quarterly and annual reports and in the documents submitted to the securities administration.