PACIFIC RIDGE EXPLORATION LIMITED. (pix-TSXV, pixzzf(OTCQB) announced details of an unbrokered private placement aimed at raising $7.2 million, with a portion of the proceeds allocated to exploration in two gold and copper projects in British Columbia.
The company said it understands that the strategic investor may receive up to 12.5 million common shares, representing 13.7% of Pacific Ridge’s outstanding shares (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 dollar units at 20 cents per HD unit for gross proceeds of $1.0 million, up to 11 million flow units at 23 cents per HD unit for gross proceeds of up to $2.53 million, and up to 12.5 million charitable flow shares (CFT Shares) 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 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.
Shares on Thursday rose 2.5%, or $0.005, to 20 cents and traded in a 52-week range of 36.5 cents and 16 cents.
Pacific Ridge said it aims to become a leading copper and gold company in British Columbia. The major Kliyul copper and gold project 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) Kemess Project, Mt. Milligan, 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.
The company said it will use the total proceeds from CFT shares to drill at the RDP project. The proceeds from the FT stake are allocated to drilling at Kiyul. The proceeds from the HD units will be used for general working capital and corporate purposes.
