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Puma Exploration, Trevali Mining teaming up in New Brunswick

Puma Exploration Inc. and Trevali Mining Corp. on March 2 announced the signing of a nonbinding letter of intent to form an alliance to develop Puma's polymetallic Murray Brook property in New Brunswick and to undertake exploration in the region.

Under the agreement, Trevali will provide to Puma all or part of the remaining C$7.5 million it requires to finalize the acquisition of the Murray Brook project.

As a result, Trevali is expected to secure a 75% interest in the Murray Brook deposit and a 51% interest in the Murray Brook East property and will manage further exploration and development.

Trevali owns the polymetallic Caribou mine, which is located about 10 kilometers east of the Murray Brook deposit and will provide access to the site's metallurgical and geochemical labs as well as the concentrator.

Puma will manage the strategic exploration alliance, which will cover existing claims held by both companies in the Murray Brook area, comprising six properties covering 8,987 hectares, and any new claims in the Restigouche-Armstrong region.

Trevali will have an initial 51% interest in the alliance and Puma will have a 49% interest, each subject to standard dilution provisions.

As part of the deal, Trevali agreed to subscribe for C$500,000 worth of Puma units. Units will be priced at 9 cents apiece and will comprise one common share and half of a warrant, with each whole warrant exercisable at 12 cents per share for three years. Closing is anticipated on March 15, with proceeds to be used for the exploration alliance projects.

A December 2016 estimate of resources at Murray Brook defined contained metal of 610 million pounds of zinc, 209 million pounds of lead, 54 million pounds of copper, 11.7 million ounces of silver and 111,000 ounces of gold in the measured and indicated categories.