Puget Ventures Inc. Arranges Private Placement for Werner Lake Mineral Belt Transaction
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 27, 2008) –
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Puget Ventures Inc. (the “Company”) (TSX VENTURE:PVS) announced today that it has arranged a brokered private placement, through a syndicate of agents led by Canaccord Capital Corporation and including Research Capital Corporation and Dundee Securities Corporation, (the “Agents”). The private placement consists of 1,875,000 Units and 3,530,000 Flow-Through Shares (the “Offering”) for total proceeds of $4,500,500. The Company has also granted the Agents an option to sell additional Units and Flow-Through Shares to raise additional gross proceeds of up to $2,000,000 (in any combination of Units and FT Shares).
Each Unit is priced at $0.80 and consists of one common share and one-half of a common share purchase warrant, exercisable into a common share at $1.00 within an eighteen (18) month period. Each Flow-Through Share is priced at $0.85.
Proceeds of the financing will be used to make the first property payment for the Werner Lake assets, fund general exploration expenditures on the extensive Werner Lake properties in North Western Ontario, to meet exploration commitments on the Trout Bay property in Red Lake, Ontario and for general working capital.
The Werner Lake Belt property package includes 2900 hectares, 1700 hectares in which Puget Ventures is acquiring a 100% interest and 1200 hectares under option from Benton Resources. The package includes three mine sites, including the Norpax Nickel Deposit and the pre-production Werner Lake Cobalt Mine. The package also includes at least 26 significant copper-cobalt, nickel-copper-PGE and copper mineralization occurrences.
The Agent will receive cash compensation equal to 8% of the gross proceeds raised and Agent’s Warrants equal to 8% of the Units sold under the Offering. Upon closing, the Company will also pay Canaccord Capital Corporation a corporate finance fee payable in Units.
This financing is subject to TSX Venture Exchange and shareholder approval of Puget Ventures Inc.’s acquisition of the Werner Lake Mineral Belt Properties.
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