Puget Ventures Inc.

Puget Ventures Inc.

December 19, 2007 16:30 ET

Puget Ventures Inc. Announces Agreement in Principle for Qualifying Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2007) - Puget Ventures Inc. (TSX VENTURE:PVS.P) -

- Option of Goldcorp's Trout Bay Property in Red Lake

- Nickel and Platinum group elements with Rhodium

- Zinc, Copper and Silver historic resource

- Excellent accessibility to property and database will allow rapid exploration

Puget Ventures Inc. (the "Corporation") is pleased to announce that it has entered into agreements with Goldcorp Inc. ("Goldcorp") and West Timmins Mining Inc. ("West Timmins") on December 18, 2007, wherein the Corporation will acquire (the "Acquisition") from West Timmins 100% of their option to acquire an undivided 60% interest in and to the mineral properties comprising Goldcorp's "Trout Bay Property" located in Red Lake, Ontario (the "Option"). The Corporation is a capital pool company and intends for the Acquisition to constitute the "Qualifying Transaction" of the Corporation as such term is defined in the policies of the TSX Venture Exchange (the "Exchange"). The Acquisition is an arm's length transaction. Upon completion of the Acquisition, it is expected that the Corporation will be a Tier 2 Mining Issuer.

West Timmins Mining is a publicly traded mineral exploration company existing under the laws of British Columbia whose shares trade on the Toronto Stock Exchange under the symbol "WTM". Goldcorp is a publicly traded mining company, trading on the Toronto Stock Exchange under the symbol "G".

Property Highlights

The Trout Bay Joint Venture with Goldcorp covers approximately 3,420 hectares in the Red Lake greenstone belt of north western Ontario. The Trout Bay Property hosts extensive zones of nickel-PGE mineralization and two zones of zinc-copper massive sulphide mineralization.

The nickel-PGE mineralization on the property occurs as disseminated to semi-massive sulphide mineralization in iron formation and volcanic rocks located at or near the basal contact of an extensive, tightly folded gabbro-pyroxenite sill complex. Mineralized widths range from 0.5 to 15.0 metres. The No. 2 Nickel Zone has been traced along strike for 550 metres and the host contact for 2,100 metres. Drilling to date has traced the mineralization to a vertical depth of 140 metres.

The property also hosts two zones of zinc-copper massive sulphide mineralization including the High Grade Lake Zone which hosts a non-compliant estimate of 124,760 tons grading 7.86% zinc, 1.50% copper, 0.24% lead, 57.8 g/t silver and 2.40 g/t gold. (This historical resource estimate has not been verified by a Qualified Person to conform to NI 43-101 standards and is included here for general information purposes only and should not be relied upon).

A geological report entitled "Independent Technical Report, Trout Bay Property, Red Lake, Ontario" (the "Technical Report") has been prepared on October 19, 2007 for West Timmins with respect to the Qualifying Property. The Technical Report has been prepared in compliance with the provisions of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The author of the Technical Report is Joerg Kleinboeck, P.Geo, who is an "independent qualified person" as defined in NI 43-101.

The Technical Report recommends a work program of geological field work, drilling and a ground geophysical program diamond drilling with a budget cost of $752,500. It is the intent of the Corporation to undertake the recommended work program upon completion of the Acquisition.

Acquisition Highlights

Pursuant to the terms of an Agreement with West Timmins Mining, subject to completion of a concurrent financing (described below) and receipt of applicable regulatory approvals, the Corporation intends to acquire the interests of West Timmins' option interest in the Property for consideration of 285,000 common shares ("Common Shares") in the capital of the Corporation, and by making a cash payment of $145,500.44, representing a reimbursement of expenditures made by West Timmins in relation to the Trout Bay Property. The Common Shares will be issued at a deemed price of CAD $0.60 per share representing a deemed acquisition value of $171,000.00.

Upon acquisition of West Timmins' interest, Puget shall be entitled to earn a 60% undivided ownership interest in "Trout Bay Property" from Goldcorp by completing aggregate exploration of $4,854.499.60, on or before November 30, 2012 with the following schedule and making a payment of $10,000 to Goldcorp on receipt of all regulatory and board approvals:

- Approximately $604,499.56 on or before November 30, 2008

- An additional $750,000 on or before November 30, 2009

- An additional $1,000,000 on or before November 30, 2010

- An additional $1,000,000 on or before November 30, 2011

- An additional $1,500,000 on or before November 30, 2012

Puget Ventures Inc. will be operator of the properties during the option period.

Upon completion of the Acquisition, the Corporation will be engaged in the business of exploring for, with the ultimate goal of developing and producing base metals and/or precious metals from the Property, which is intended to constitute the "Qualifying Property" as such term is defined by the Exchange. In addition, the Corporation may explore and develop such other properties and interests as may be subsequently acquired by the Corporation.

Private Placement

Concurrent with the closing of the Acquisition, the Corporation expects to complete a private placement, the terms of which are yet to be settled. The Corporation will formally announce the private placement in a separate news release. The net proceeds of the Private Placement will be used by the Corporation to undertake the proposed work program with respect to the Qualifying Property and for general working capital purposes.

Sponsorship of Qualifying Transaction

Sponsorship of a qualifying transaction of a capital pool company is required by the Exchange unless exempt in accordance with the policies of the Exchange. The Corporation will apply for an exemption from sponsorship requirements on the basis that the Acquisition is a Canadian based resource venture and as such falls within the sponsorship exemptions of Exchange policies. However, there is no assurance that the Corporation will obtain this exemption.

Conditions of the Acquisition

Completion of the Acquisition is subject to a number of conditions including, but not limited to, the closing of Private Placement, Exchange acceptance and, if required by Exchange policies, majority of the minority shareholder approval. Where applicable, the Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Acquisition, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

In accordance with Exchange policy, the Corporation's shares are currently halted from trading and will remain so until such time as the Exchange determines, which, depending on the policies of the Exchange, may not occur until the completion of the Acquisition.

The foregoing technical disclosure, including results of the previous exploration provided by West Timmins Inc., has been reviewed and compiled by Dave Laudrum, P. Geo., who is a "qualified person" for the purpose of NI 43-101. All geological information provided in this press release, including all information on the Property, has been provided by management of West Timmins Mining and has not been independently verified by management of the Corporation.

Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the Securities and Exchange Commission.

The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management.

Contact Information

  • Puget Ventures Inc.
    Michael A. Dehn
    CEO and Director
    (604) 601-8526 or (647) 477-2382
    (604) 669-3844 (FAX)
    Email: mdehn@pugetventures.com