Puget Ventures Inc. Provides Updates to Information Circular
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/20/11 -- PUGET VENTURES INC. ('Puget') (TSX VENTURE: PVS) (the 'Company') provides the following updates to its information circular dated June 29, 2011 (the 'Information Circular') with respect to its annual and special meeting of its shareholders (the 'Meeting'), to be held at 10:00 AM (Vancouver time) on July 21, 2011.
The following updates to the Information Circular are made in light of the Company's previously announced financing (the 'Offering'), through its agent Mackie Research Capital Corporation, of 15,239,000 Subscription Receipts at $1.05 per Subscription Receipt, for total gross proceeds of $16,000,950 (as opposed to $20,000,400, as previously stated in the Information Circular). The Offering was previously announced on December 6, 2010.
Each subscription receipt will entitle the holder thereof to receive, without further consideration or action, one Unit of the Company. Each Unit will be comprised of one common share and one-half of a share purchase warrant, with each whole warrant exercisable at $1.50 per share for a period of 36 months from closing. The Subscription Receipts will be converted to Units upon satisfaction of certain conditions, including but not limited to the completion of the Company's acquisition (the 'Pafra Acquisition') of Pafra Enterprises Company Limited ('Pafra'), previously announced on September 20, 2010 and more fully described in the Information Circular.
The Information Circular will be updated as described below. An addendum to the Information Circular (the 'Addendum') will be provided to the shareholders of the Company in advance of the Meeting (all undefined capitalized terms have the meaning ascribed to them in the Information Circular).
The Offering
All references to the Offering in the Information Circular will be updated to reflect the financing terms stated above, namely that the Offering will be for total gross proceeds of $16,000,950 (as opposed to $20,000,400, as previously stated in the Information Circular).
Funds Available and Use of Proceeds
The 'Funds Available' and 'Use of Proceeds' tables in the Information Circular will be updated with the following tables:
Funds Available
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Available Funds on
Completion of the
Pafra Acquisition
Source of Funds and the Offering
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Existing Working Capital(1) $377,000
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Estimated net proceeds of the Offering $14,574,614
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Less: Remainder of amounts due to the Sponsor with
respect to the Pafra Acquisition plus applicable taxes ($100,000)
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Less: Cash fee payable pursuant to the Finder's Fee
Agreement ($500,000)
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Less: Remaining expenses and costs relating to the Pafra
Acquisition (including legal fees and other expenses,
but excluding amounts due to the Sponsor)(2) ($41,000)
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Estimated funds available $14,310,614
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Notes:
(1) Estimated as at June 30, 2011. Does not include the estimated working
capital deficiency of Pafra. Pursuant to the Pafra Purchase Agreement, IMHL
has agreed to pay, on or before that day which is 180 days from the
Acquisition Closing Date, all consolidated debts and liabilities of Pafra
incurred prior to and including the Acquisition Closing Date, excepting
those debts and liabilities of Pafra arising under certain service
agreements for drilling and geological and exploration support relating to
the commencement of the exploration program for the Karakul Property
recommended under the Karakul Report. Upon completion of the Pafra
Acquisition, the Resulting Issuer will reimburse IMHL for such expenses.
(2) Estimated aggregate expenses for legal fees, audit and accounting fees,
filing fees and printing costs. The Company has also agreed to pay all
reasonable expenses of the Sponsor in connection with the Pafra Acquisition.
Use of Proceeds
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Principal Purpose Estimated Amount ($)
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Completion of recommended exploration program for the
Karakul Property(1) 10,848,000
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Complete phase 1 of the recommended exploration program
for the Werner Lake Mineral Belt properties(2) 470,000
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General and administrative expenses for the next 12
months 850,000
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Unallocated working capital 2,142,614
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Notes:
(1) See 'The Karakul Property' in Appendix B Information Concerning Pafra
and the Karakul Property for further discussion. A portion of these costs
will be incurred by IMHL, Pafra or its subsidiaries prior to the completion
of the Pafra Acquisition, and, to the extent that they are incurred by IMHL,
will be reimbursed by the Resulting Issuer on completion of the Pafra
Acquisition.
(2) An exploration program has been recommended in a NI 43-101 compliant
technical report dated March 22, 2011 and revised June 23, 2011 entitled
'Werner Lake Mineral Belt Properties, Kenora Mining Division, Ontario -
Report for Puget Ventures Inc.' prepared by Gerald Harper, Ph.D., P.Geo (O)
with respect to Puget's Werner Lake mineral properties in Ontario.
The Company's anticipated general and administrative expenses in the 12 month period subsequent to the completion of the Pafra Acquisition and the Offering are also updated with the following table:
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Salaries and consulting fees for senior staff $637,632
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Marketing and Investor Relation Fees $60,000
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Corporate and administrative expenses $110,368
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Professional Fees $42,000
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TOTAL $850,000
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Share Capital
As fewer Subscription Receipts will be issued under the Offering than was previously anticipated in the Information Circular, the following tables in the Information Circular will be updated as follows:
Pro Forma Consolidated Capitalization
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Amount outstanding
after giving effect
to the Share
Consolidation, the
Amount authorized or to be Pafra Acquisition
Designation of Security authorized and the Offering(1)
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Common Shares Unlimited 86,458,227
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Share purchase warrants - 14,806,046
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Incentive stock options - 997,963
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Special Warrants - 80,000,000
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Compensation options - 1,219,120
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Notes:
(1) Assumes that the Subscription Receipts issued under the Offering are
converted to Units. See 'the Offering' for further description.
(2) Pursuant to the Agency Agreement, the Agent will receive compensation
option receipts, each compensation option receipt entitling the holder
thereof to receive one compensation option upon satisfaction of certain
release conditions, including the completion of the Pafra Acquisition,
without payment of additional consideration or further action. Each
compensation option will entitle the holder thereof to purchase one Unit at
a price of $1.05 per Unit for a period of 36 months from the Acquisition
Closing Date.
Fully Diluted Share Capital
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Common Shares
Outstanding (fully
diluted)
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Percentage
Number (%)
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Holders of Post-Consolidation Common Shares 29,769,227 16.17%
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Common Shares issuable upon exercise of outstanding
share purchase warrants (after completion of the
Share Consolidation) 6,686,546 3.63%
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Common Shares issuable upon exercise of outstanding
incentive stock options (after completion of the
Share Consolidation) 997,963 0.54%
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Common Shares issued to IMHL or its nominees under
the Pafra Acquisition 40,000,000 21.73%
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Common Shares issuable upon exercise of the Special
Warrants issued to IMHL or its nominees under the
Pafra Acquisition 80,000,000 43.46%
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Common Shares, as part of the Units issuable upon
conversion of the Subscription Receipts 15,239,000 8.28%
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Common Shares issuable upon exercise of the Warrants
forming part of the Units issuable upon conversion
of the Subscription Receipts 7,619,500 4.14%
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Common Shares forming a portion of the Units
issuable upon exercise of the Compensation Options
issued upon conversion of the Compensation Option
Receipts 1,219,120 0.66%
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Common Shares issuable upon exercise of the Warrants
issuable upon exercise of the Compensation Options
issued upon conversion of the Compensation Option
Receipts 609,560 0.33%
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Common Shares issuable as part of the finder's fee
payable to Performance Capital Advisors under the
Finders Fee Agreement 1,450,000 0.79%
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Common Shares issuable as part of the finder's fee
upon exercise of the Finders Fee Warrants 500,000 0.27%
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TOTAL 184,090,916 100.00%
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Principal Shareholders & Shareholdings of Directors and Officers
As the number of Subscription Receipts issuable under the Offering has decreased relative to the number previously disclosed in the Information Circular, the percentage shareholdings of Imperial Mining Holdings Limited ('IMHL'), the vendor in the proposed Pafra Acquisition, and the proposed directors and officers of the Company following completion of the Pafra Acquisition, will be as follows:
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Percentage and
Number of Common
Shares Upon
Completion of the
Share Consolidation,
the Pafra
Acquisition and the
Name and municipality and country of residence Offering(1)(2)(3)
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IMHL 40,000,000
Isle of Man (44.31%)
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Raymond Castelli 456,726
Vancouver, British Columbia (0.53%)
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Erin Chutter 1,245,303
Vancouver, British Columbia (1.44%)
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Christopher Couzelis 186,556
Richmond, British Columbia (0.22%)
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Igor Kovarsky
Port Moody, British Columbia 0
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Tim Mann
Oakville, Ontario 0
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Peter Reynolds
Encounter Bay, Australia 0
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Wilson Russell 481,000
Vancouver, British Columbia (0.56%)
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Bagrat Safarian
Encino, California 0
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Marc Thomas
Moscow, Russia 0
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Dmitry Vasiliev
London, United Kingdom 0
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Notes:
(1) Does not include Common Shares issuable upon exercise of outstanding
share purchase warrants, incentive stock options, the Special Warrants, the
Finders Fee Shares issuable upon exercise of the Special Warrants, or any
securities issuable to the Agent with respect to the Offering.
(2) The number of Common Shares beneficially owned by the individuals
(excluding IMHL) listed, directly or indirectly, is based on information
furnished by Computershare Investor Services Inc., the registrar and
transfer agent of the Issuer, insider reports filed on SEDI and by the
individuals themselves.
(3) Assumes the Offering is fully subscribed and that none of the directors
or officers purchases securities under the Offering. Does not include Common
Shares issuable upon the exercise of incentive stock options or share
purchase warrants held by that individual.
Pro Forma Financial Information
The revised pro forma balance sheet of the Company, assuming completion of the Share consolidation, the Pafra Acquisition and the Offering, currently attached as Appendix G of the Information Circular, will be updated and sent to the shareholders of the Company as part of the Addendum.
The following table sets out selected revised pro forma financial information of the Company, assuming completion of the Pafra Acquisition and the Offering:
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Pro Forma(1)
(Unaudited)($)
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Total current assets 16,180,360
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Total assets 25,496,307
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Total current liabilities 1,074,726
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Total liabilities 1,074,726
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Shareholders' equity 24,421,581
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Notes:
(1) The table above should be read in conjunction with the notes to the
revised pro forma balance sheet for assumptions and adjustments.
About Puget Ventures Inc. (www.pugetventures.com)
Puget Ventures Inc. is a Vancouver, Canada-based mineral-resource exploration company focused on the acquisition, exploration and development of strategic base metals properties, with a focus on cobalt. Puget Ventures' package of properties encompasses historic deposits and past Cobalt and Nickel-Copper-PGE producers, including the Werner Lake Mineral Belt located in North-western Ontario, Canada. On December 6, 2010, Puget announced a definitive agreement to acquire the Karakul and other mineral projects in Russia and Mongolia subject to Exchange and shareholder approval.
Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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.
Contacts:
Puget Ventures Inc.
Mr. Mitchell Smith
1 (604) 688-4219
1 (604) 688-4215 (FAX)
info@pugetventures.com
www.PugetVentures.com