PGM Ventures Corporation

PGM Ventures Corporation

January 05, 2005 16:56 ET

PGM Ventures Corporation Completes Second Tranche Of Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PGM VENTURES CORPORATION

TSX VENTURE SYMBOL: PPG

JANUARY 5, 2005 - 16:56 ET

PGM Ventures Corporation Completes Second Tranche Of
Private Placement

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2005) - PGM Ventures
Corporation (TSX VENTURE:PPG) - PGM Ventures Corporation ("PGM") is
pleased to announce the closing of the second tranche of a flow-through
private placement for gross proceeds of $910,000 on December 30, 2004.
This flow-through private placement is part of a larger financing
comprised of an offering of flow-through and non flow-through shares for
gross proceeds of $2,307,000. For details concerning the first tranche
of the placement, please see the press release dated December 22, 2004.
Pursuant to the second tranche of the flow-through private placement,
PGM issued 1,820,000 units on December 30, 2004, most of which was
placed with two limited partnerships in the MineralFields Group of
Toronto, at $0.50 per unit. Each unit is comprised of one common share,
to be issued as a "flow-through share" of PGM and one-half of one common
share purchase warrant of PGM. Each whole common share purchase warrant
entitles the purchaser to purchase one common share that is not a
"flow-through share" at an exercise price of $0.57 at any time on or
before 5:00 p.m. (Toronto time) on the date that is 24 months from the
date of issuance of the warrant. Limited Market Dealer Inc., acting as
agent for the brokered portion of the placement, received a finder's fee
in the amount of $26,000 representing 4% of the gross proceeds of the
brokered portion of the private placement, a due diligence fee in the
amount $53,500 representing 5% of the proceeds raised in both the first
and second tranches (including GST) and a warrant to purchase up to
130,000 common shares of PGM on the same terms as the warrants forming
part of the units. The flow-through common shares, the common share
purchase warrants and the underlying common shares issued in the second
tranche have a hold period of four months expiring on May 1, 2005.

Additionally, PGM issued 2,794,000 units at $0.50 per unit on December
30, 2004 on a non flow-through and non-brokered basis for gross proceeds
of $1,397,000. Each unit consists of one common share of PGM and
one-half of one common share purchase warrant of PGM. Each whole common
share purchase warrant entitles the purchaser to purchase one common
share at an exercise price of $0.57 at any time on or before 5:00 p.m.
(Toronto time) on the date that is 24 months from the date of issuance
of the warrant. Both the common shares and the common share purchase
warrants have a hold period of four months expiring on May 1, 2005.

PGM will use the gross proceeds of the flow-through private placement to
conduct further drilling and exploration on its Ontario properties and
the proceeds of the non flow-through private placement to conduct
further work on its properties in Spain and for general working capital
purposes.

PGM is a tier 2 junior resource company, quoted for trading on the TSX
Venture Exchange under the symbol "PPG". There are currently 41,131,749
shares issued in PGM, including the shares issued pursuant to this
private placement.

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 Canadian dollars
unless otherwise noted.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    PGM Ventures Corporation
    Jim Voisin
    (519) 699-5352
    www.pgm-ventures.com
    The TSX Venture Exchange Inc. has neither approved nor disapproved the
    information herein contained.