Pacific Ridge raising $7.2 million for B.C. copper-gold drilling
Pacific Ridge Exploration Ltd. [PEX-TSXV, PEXZF-OTCQB] has announced details of a non-brokered private placement that aims to raise $7.2 million, with part of the proceeds earmarked for drilling at two gold-copper projects in in British Columbia.
The company said it understands that a strategic investor may acquire up to 12.5 million common shares, representing 13.7% of the outstanding shares of Pacific Ridge (assuming completion of the maximum offering), and would result in the unnamed investor becoming the company’s largest shareholder.
The private placement offering consists of up to 5.0 million hard dollar units priced at 20 cents per HD Unit for gross proceeds of $1.0 million, up to 11 million flow-through units priced at 23 cents per FT Unit for gross proceeds of up to $2.53 million, and up to 12.5 million charity flow-through shares (the CFT shares) priced at 29.4 cents each for gross proceeds of $3.67 million.
Each HD unit will consist of one common share and one-half of one common share purchase warrant. Each FT Unit will consist of once common share that will qualify as a flow-through share within the meaning of the Income Tax Act (Canada) and one half of one warrant that will also qualify as a flow-through share within the meaning of the Income Tax Act. Each CFT share will also qualify as a flow-through share.
Each warrant will entitle the holder to purchase one common share for 30 cents at any time on or after a date that is four months from the date of closing until the date that is 24 months after the closing date.
On Thursday, the shares rose 2.5% or $0.005 to 20 cents and trade in a 52-week range of 36.5 cents and 16 cents.
Pacific Ridge has said it aims to be a leading copper-gold in British Columbia. The flagship Kliyul copper-gold project is located in a similar geological environment to other copper-gold porphyry deposits in B.C., including Centerra Gold Inc.’s [CG-TSX, CAGDF-OTC] Kemess project, and Mt. Milligan projects, and Newmont Corp.’s [NEM-NYSE, ASX, PNGX] 70%-owned Red Chris gold-copper porphyry mine further to the northeast.
The Kliyul Main Zone hosts 334.1 million tonnes of grade 0.33% copper equivalent (CuEq), or 2.42 billion pounds CuEq, including 1.11 billion pounds of copper, 2.74 million ounces of gold and 10.22 million ounces of silver in the inferred category. The Main Zone remains open of expansion.
Aside from Kliyul, the company’s portfolio includes the RDP, Onjo and Redton copper-gold projects, which are also located in B.C. It also has three gold projects located in the Canadian Yukon.
The company said it will use gross proceeds of the CFT shares for drilling at the RDP project. Proceeds from the FT share are earmarked for drilling at Kiyul. Proceeds from the HD Units will be used for general working capital and corporate purposes.
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