Peruvian company takes 13.8% stake in Pacific Ridge
Pacific Ridge Exploration Ltd. [PEX-TSXV, PEXZF-OTCQB] has raised $8.45 million after closing the final tranche of a previously announced private placement financing.
The private placement offering consisted of up to 9.9 million hard dollar units priced at 20 cents per HD Unit for gross proceeds of $1.98 million,11 million flow-through units priced at 23 cents per FT Unit for gross proceeds of $2.53 million, and 13.4 million charity flow-through shares (the CFT shares) priced at 29.4 cents each for gross proceeds of $3.9 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 one 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.
The company said it understands that after closing of the final tranche, Minsur S.A., a leading Peruvian mining company, through its subsidiary, Cumbres del Sur S.A.C., has purchased, as part of a follow-on transaction to the issuance of the CFT shares, all of the common shares issued under the final tranche. Following completion of the transaction, Minsur S.A., through its Cumbres subsidiary, owns approximately 13.8% stake in Pacific Ridge.
Pacific Ridge shares advanced on the news, rising 2.8% or $0.005 to 18.5 cents. The shares trade in a 52-week range of 36.5 cents and 16 cents.
Financing proceeds will be used to advance the company’s flagship Kliyul copper-gold project, which 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.
Pacific Ridge said it has granted Cumbres a right of first refusal, for nine months to acquire the RDP copper-gold project. The company said the parties have agreed to engage in good faith negotiations regarding a potential strategic transaction in relation to the RDP project.