VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget") is pleased to announce that, further to its news release dated June 26, 2012, it has received final acceptance of a definitive option agreement with Blue Gold Mining Inc. (TSX VENTURE:BGX) ("Blue Gold") whereby Blue Gold has the option to earn up to a 65% interest in three porphyry targets (collectively referred to as "the Project") within Paget's 100%-owned Ball Creek Project located in British Columbia's Golden Triangle region. In addition, Paget has closed the private placement with Blue Gold Mining provided for under the option agreement and previously announced on June 26, 2012.
Under the private placement, Blue Gold acquired 6,054,212 units of Paget at a price of $0.16 per unit for gross proceeds of $968,673.92. Each unit consists of one common share and one half of one common share purchase warrant. Each warrant is exercisable into one common share at a price of $0.30 per share for a period of 2 years from the date of issuance. All of the shares, and any shares issued upon exercise of the warrants, are subject to a regulatory hold period until December 9, 2012.
As a result of Blue Gold acquiring the 6,054,212 units of Paget under the private placement, Blue Gold now holds 9.9% of Paget's outstanding common shares on a partially diluted basis. Blue Gold maintains a pre-emptive right to maintain its equity ownership position in Paget for a period of three years from the date of closing of the private placement.
Pursuant to the option agreement, Paget will use $300,000 of the proceeds from the private placement to fund exploration and development work on the Project. The balance of the proceeds will be used to fund exploration and development work on claims outside the joint venture project that form part of the Ball Creek Project and for general working capital purposes.
About Paget Minerals Corp.
Paget Minerals Corp. is a publicly traded resource company focused on mineral exploration and the advancement of the company's priority Ball Creek Project in British Columbia. The company hosts a 52,442-hectare, contiguous mineral tenure package in the Golden Triangle - Iskut Mineral District located just 8km west of Highway 37 and only 36km northwest of the new Northwest Transmission Line Substation at Bob Quinn and neighbors three major mine development projects in the Golden Triangle -- Galore Creek, Schaft Creek and Red Chris. In 2012, Paget will focus its BC exploration program on the Ball Creek Project, as well as advancing its exploration in Mexico. Paget also maintains its equity position in Trident Gold Corp. exploring for gold in Colombia. David Volkert, President and CEO, serves as the Qualified Person under the definitions of NI 43-101.
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.