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Puget Ventures Inc.: Puget Ventures Inc. Announces Closing of Private Placement to Raise Funds to Commence Expansion and Develo

^{Published on 2009-09-08 13:14:16 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) - Further to a press release dated July 28, 2009, Puget Ventures Inc. (the "Company") (TSX VENTURE:PVS) announced today that it has closed on an over-subscription of 10,251,331 units, raising total of $3,075,399.30 and has also closed a first tranche of flow-through shares of 1,250,000 shares totalling $377,000.00, primarily brokered by JovFunds Inc. ("JovFunds").

"The proceeds of this closing will allow us to move forward on the confirmation and expansion of the historic Werner Lake cobalt deposit at a time when cobalt applications, such as lithium batteries, are facing high demand growth," said Erin Chutter, President of Puget Ventures Inc.

"Puget's Werner Lake property is one of only a few primary cobalt deposits in North America, providing a safe and secure supply for end-users," said John McMahon, Managing Partner, JovFunds.

"Puget would also like to express its thanks to John McMahon for his leadership role in the financing, and ensuring that the raise included a broad-based investor group of Canadian institutions and others from the financial industry who will be valuable participants in the growth of the company," said Chutter.

Each Unit was priced at $0.30 and consisted of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable into a common share at $0.40 within a twenty four (24) month period. Each Flow-Through Share is priced at $0.40.

Proceeds of the financing will be used to expand and confirm historic cobalt and copper resources at the mine site and initiate engineering work on the Werner Lake West Cobalt deposit, to meet exploration commitments in the Werner Lake Belt and in Red Lake, Ontario, and for general working capital.

Agent's compensation was paid to JovFunds, consisting of 915,938 broker warrants (the "JovFunds Broker Warrants") and $227,373.94 in cash, in accordance with the policies of the TSX Venture Exchange. Each JovFunds Broker Warrant will entitle the holder to purchase one Unit of the Company for a period of twenty four (24) months from the date of issuance at a price of $0.30 per Unit. In addition, an aggregate of 180,200 broker warrants and $45,632 was paid to a syndicate comprised of qualified finders, with each such broker's warrant entitling the holder to purchase one Share of the Company for a period of twenty four (24) months from the date of issuance at a price of $0.30 per Share.

The securities issued under this private placement will be subject to a four month hold period, expiring January 9, 2010, under applicable Canadian securities legislation.

About JovFunds Management Inc. ([ www.jovfunds.com ])

JovFunds provides innovative investment solutions for Canadians through the creation, distribution and management of high quality investment products. JovFunds manages and distributes approximately $2.5 billion of client assets and is wholly owned by Jovian Capital Corporation (TSX:JOV).

About Puget Ventures Inc. ([ www.pugetventures.com ])

Puget Ventures Inc. is a TSX Venture Exchange listed mineral exploration company that controls the Werner Lake Mineral Belt, including the advanced stage Werner West Copper Cobalt deposit, one of Canada's only primary cobalt properties, located in Northwestern Ontario. Puget is also currently exploring the Trout Bay copper-zinc property in Red Lake, Ontario.

Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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.