Papuan Precious Metals Corp.
TSX VENTURE : PAU

Papuan Precious Metals Corp.

February 07, 2011 12:44 ET

Papuan Precious Metals Announces Non-Brokered Private Placement Financing

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Papuan Precious Metals Corp. (the "Company") (TSX VENTURE:PAU) announces a non-brokered private placement financing of a minimum of C$5 Million and up to $7 Million in Units at a price of $.45 per Unit. Each Unit will consist of one common share plus one-half of one common share purchase warrant, with each whole warrant exercisable to purchase a common share at a price of $0.55 for a period of 18 months from closing.

If the closing price of the Company's common shares on the TSX Venture Exchange is greater than $1.00 per share for a period of 10 consecutive trading days at any time after the four month anniversary of the closing date, the Company may, within five trading days of such 10 day period, accelerate the expiry date of the Warrants by giving notice to the holders thereof whereupon the Warrants will expire on the 30th day after such notice.

In consideration of their efforts in locating investors for the Private Placement, the Company will pay a cash commission equal to 7% of the Units sold to investors located by such Finders. The Finders will also be issued compensation warrants to purchase that number of common shares equal to 7% of the number of Units sold to such investors. Each compensation warrant is exercisable to purchase one common share of the Company for a period of 12 months from the Closing Date at a price of $0.55.

All securities issued will be subject to a four month restricted resale period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals including approval of the TSX Venture Exchange.

The net proceeds from the sale of the Units will be used to advance development of the Company's properties, for potential acquisitions and for general working capital.

ON BEHALF OF THE BOARD

Devinder Randhawa, Chairman & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

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

  • Papuan Precious Metals Corp.
    Devinder Randhawa
    Chairman & CEO
    250-979-7022
    www.ppmpng.com