PACIFIC RIDGE EXPLORATION LIMITED. (pix-TSXV, pixzzf(OTCQB) raised $8.45 million after closing the last tranche of previously announced private placement financing.
The private placement offering consists of up to 9.9 million dollar units at 20 cents per HD unit for gross proceeds of $1.98 million, 11 million flow units at 23 cents per HD unit for gross proceeds of $2.53 million, and 13.4 million charitable flow shares (CFT Shares) 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 a common share purchase warrant. Each FT Unit will consist of one common share that qualifies as a flow-through share within the meaning of the Income Tax Act (Canada) and one half of a security that also qualifies 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 entitles the holder to purchase one common share for 30 cents at any time on or after a date that is four months from the Closing Date until a date that is 24 months after the Closing Date.
The company said it understands that following the closing of the final tranche, Minsur SA, a leading Peruvian mining company, through its subsidiary Cumbres del Sur SAC, has purchased all common shares issued under the final tranche, as part of a follow-on transaction to issue CFT shares. Following completion of the transaction, Minsur SA, through its subsidiary Cumbres, will own approximately 13.8% of Pacific Ridge shares.
Pacific Ridge shares advanced on the news, rising 2.8%, or $0.005, to 18.5 cents. Shares are trading in a 52-week range of 36.5 cents and 16 cents.
Proceeds from the financing will be used to develop the company’s flagship Kliyul copper and gold project, which is located in a geological setting similar to other copper and gold porphyry deposits in British Columbia, including Centra Gold Company (CG-TSX, CAGDF-OTC) Kemmies Project, Milligan Mountain Projects, and Newmont Company (no(NYSE, ASX, PNGX) 70%-owned Red Chris gold and copper mine to the northeast.
The Cleol Main Zone hosts 334.1 million tonnes of 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 inferred grade. The main area remains open for expansion.
Aside from Kliyul, the company’s portfolio includes the RDP, Onjo and Redton copper and gold projects, which are also located in British Columbia. It also has three gold projects located in the Canadian Yukon.
Pacific Ridge said it granted Cumbres a nine-month right of first refusal to acquire the RDP copper and gold project. The company said that the two parties agreed to enter into negotiations in good faith regarding a potential strategic transaction in relation to the RDP project.
