The penny stock junior Puma Exploration Inc (CVE: PUMA) (OTCMKTS: PUMXF) now has a joint venture with one of the top names in the gold mining industry.
Puma announced Thursday that it is giving Kinross Gold Corp (TSE: K) (NYSE: KGC) the option to take a 65 per cent stake in its flagship New Brunswick project. The gold major will be required to spend C$16.75 million over the next five years to acquire that full majority interest.
Furthermore, Kinross will be expected to put down a minimum of C$2 million to fund a 5,000-metre drill campaign within the first year and a half. The Toronto-based Tier 1 producer has arranged a C$1-milllion-dollar private placement too. It will buy almost 17 million Puma shares at C$0.06 apiece.
The highly prospective Lynx gold zone identified at Puma’s 49,000-hectare Williams Brook Project was a key factor inspiring Kinross to invest. Significant lengths of gold mineralization have been intercepted at Lynx. Most notably, 5.5 grams per tonne gold over 50.1 metres.
“Kinross’ commitment represents a stamp of approval on Williams Brook’s potential,” Puma chief executive Marcel Robillard said in a news release, “and having Puma as the operator speaks to Kinross’ confidence in the strength of our exploration team.”
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Puma points out ‘Hot Bed of Activity in Atlantic Canada’
In Puma’s latest presentation, the junior noted that Williams Brook shares similar characteristics with the Valentine Gold Mine that Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) is putting the finishing touches on. Also, the Queensway operation held by New Found Gold Corp (CVE: NFG).
These vast projects sit to the east of Puma’s flagship asset, in Newfoundland.
“New Brunswick, Nova Scotia and Newfoundland all share a common geology,” Puma says.
In addition to Lynx, Puma has identified a series of other prospective gold targets. Surface sampling has been completed at the Jaguar, Panthera and Cougar zones, but Lynx and its 4-kilometre extension to the Cheetah zone in the northeast is the company’s primary focus. About 16,000 metres of drilling have been completed at Lynx.
In July, Puma pulled a grab sample containing 72 g/t Au from the “Lion” zone 6 kilometres northeast of Cheetah.
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