PGM Ventures Corporation

PGM Ventures Corporation

June 01, 2006 15:07 ET

PGM Closes CDN$15 Million Dollar Private Placement and Announces Increase in Project Debt Facility with Investec Bank

TORONTO, ONTARIO--(CCNMatthews - June 1, 2006) - PGM Ventures Corporation ("PGM") (TSX VENTURE:PPG) is pleased to announce that it has completed a CDN$15 million private placement at CDN$1.00 per share. The two placees include Investec Bank (UK) Limited ("Investec Bank"), PGM's project debt provider, for CDN$10 million and Trafigura Beheer B.V., PGM's offtake provider and concentrate marketer, for $5 million. This transaction is subject to regulatory approval. There is a hold period on the shares which will expire on October 1, 2006.

This private placement concludes PGM's equity financing requirements to build the Aguas Tenides Mine. PGM has raised a total of CDN$70 million in separate transactions. The first of these consisted of a CDN$30 million private placement led by MGI Securities Inc. and Orion Securities Inc., and including Canaccord Adams. The second placement consisted of a CDN$25 million convertible debenture at CDN$1.25 with Dundee Resources Limited, the resource merchant banking arm of Dundee Corporation. The convertible debenture placement remains subject to final documentation, regulatory approval and certain other conditions (see press release May 23, 2006). The transaction is expected to close on June 30, 2006.

In addition, PGM is pleased to announce that Investec Bank has agreed to increase the financing facility for Aguas Tenides from US$65 million to US$100 million. The financing facility is subject to final negotiation and definitive agreements.

With the completion of the equity portion of the required capital to build Aguas Tenides and the increase in the financing facility with Investec Bank, the project financing arrangement for the Aguas Tenides Project are now substantially in place with construction scheduled to begin once the final permit, "Ampliacion de la actividad en Mina de Aguas Tenidas con la Construccion de una Planta de Tratamiento de Mineral y un Deposito de Esteriles". (Expansion of the activity at Aguas Tenidas Mine with a Construction of an Ore Treatment Plant and Tailings Deposit), is received.

PGM has 113,536,231 shares issued and outstanding as of the date of this press release.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are in Canadian dollars unless otherwise noted.

The TSX Venture Exchange does not accept responsibility for the adequacy of accuracy of this release.

Contact Information

  • PGM Ventures Corporation
    Peter Miller
    1 (416) 815-8666
    PGM Ventures Corporation
    Norm Brewster
    1 (416) 815-8666