Paget Minerals Corp.
TSX VENTURE : PGS

Paget Minerals Corp.

December 10, 2010 17:08 ET

Paget Minerals Announces Private Placement Terms

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget" or the "Company") is pleased to announce that it has finalized the terms and pricing for its previously announced private placement (the "Offering"). Under the Offering, Paget has agreed to issue (i) $2.4 million of units ("Common Units"), each consisting of one common share (a "Common Share") of Paget and one whole common share purchase warrant (a "Common Unit Warrant") at a price of $0.20 per Unit and (ii) $1.0 million of flow-through units ("Flow-Through Units"), each consisting of one flow-through common share (a "Flow-Through Share") and one-half of one common share purchase warrants (each whole warrant, a "Flow-Through Unit Warrant") at a price of $0.25 per Flow-Through Unit. RBC Capital Markets is acting as the sole agent in connection with Offering.

Each whole Common Unit Warrant will entitle the holder to acquire at any time up to 24 months from the Common Unit Closing Date (as defined herein), one Common Share of Paget at an exercise price of $0.30 per Common Share. In the event that the 20-day volume weighted average price of the Common Shares on the TSX-V is greater than $0.30 at any time following the Common Unit Closing Date, the Company may accelerate the expiry date of the Common Unit Warrant by giving notice to the holders thereof and in such case the Common Unit Warrant will expire on the 30th day after the date on which such notice is given by the Company. Each whole Flow-Through Unit Warrant will entitle the holder to acquire at any time up to 18 months from the Flow-Through Closing Date (as defined herein), one common share of Paget at an exercise price of $0.53 per Common Share.

The net proceeds received by Paget from the offering of Common Units will be used for exploration and development activities and general corporate purposes. The gross proceeds of the Flow-Through Unit Offering will be used by Paget to incur Canadian exploration expenses ("Qualifying Expenditures") prior to December 31, 2011. The Company will renounce the Qualifying Expenditures to subscribers of the Flow-Through Shares for the fiscal year ended December 31, 2010.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. Closing of the Common Unit offering is expected on or about January 6, 2011 (the "Common Unit Closing Date") and the closing of the Flow-Through Unit offering is expected on or about December 30, 2010 (the "Flow-Through Unit Closing Date").

About Paget Minerals Corp.

Paget Minerals Corp. is a British Columbia company focused on mineral exploration and the development of a diverse range of precious metal, base metal and rare earth element projects in British Columbia and Colombia. Main projects in BC are: Chist Creek, Cabin, and Mt. Dunn.

On Behalf of the Board of Paget Minerals Corp.,

David F. Volkert, President & CEO

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.

Contact Information

  • Paget Minerals Corp.
    David Volkert
    President & CEO
    (778) 327-4449
    (778) 327-6546 (FAX)
    www.pagetminerals.com