PGM Ventures Corporation

PGM Ventures Corporation

June 30, 2005 08:52 ET

PGM Ventures Corporation Announces Closing Of Private Placement Financing And The Acquisition Of The Remaining 20% Of The Shares Of 'Minas De Aguas Tenidas'

TORONTO, ONTARIO--(CCNMatthews - June 30, 2005) - PGM Ventures Corporation (TSX VENTURE:PPG) - PGM Ventures Corporation ("PGM") is pleased to announce that it has now closed the private placement previously announced on June 23, 2005. Under the terms of the placement, PGM issued 13,426,909 common shares of PGM at a price per share of Cdn. $0.55 for gross proceeds of US $6,000,000 (Cdn. $7,384,000). For its services as agent in connection with this placement, M&A Advisors Ltd. will received a cash fee of US $300,000 and warrants to purchase up to 1,342,690 common shares at any time for a period of twelve months from the date of issue at an exercise price per share of Cdn. $0.63. Both the shares and warrants issued in connection with this placement are subject to hold periods that expire on October 25, 2005. The net proceeds of the offering will be used principally for (i) the acquisition of the remaining 20% of the shares of Minas de Aguas Tenidas, S.A. ("MATSA") that PGM does not currently own, as more fully described below, (ii) completion of a bankable feasibility study in respect of the Aguas Tenidas mine, and (iii) for general working capital purposes.

In addition, PGM is pleased to announce that it has completed the acquisition from INSERSA S.A., of the remaining 20% of the shares of MATSA that PGM does not currently own. MATSA is a Spanish company that holds the rights to the Aguas Tenidas mine. Under this transaction, PGM paid INSERSA S.A. 2,000,000 Euros for 20% of the outstanding shares of MASTSA. PGM is now the 100% owner of the Aguas Tenidas mine located in southwestern Spain.

PGM is listed on the TSX Venture Exchange and has 68,924,585 shares issued and outstanding.

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.

The TSX Venture Exchange Inc. has neither approved nor disapproved the information herein contained.

Contact Information

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