ENP Newswire -
Release date- 12082014 -
The offering will be open to all shareholders in all of the provinces and territories of
Under the proposed financing, Peregrine shareholders, as of a record date to be announced, will receive one right for each common share of the Company ('Common Share') held. Each Unit will be comprised of one Common Share and one common share purchase warrant ('Warrant'). Each Warrant will be exercisable for one Common Share for a period of six months following the closing of the rights offering.
The number of rights that will be required to purchase one Unit, the price of the Units and the exercise price of the Warrants, as well as the record date for the rights offering and the expiry date of the rights, will be determined at the time of the filing of the final short form prospectus. Application is being made to the
For the standby commitment, Peregrine will agree to pay the Standby Purchasers a fee equal to 3% of the gross proceeds of the rights offering, excluding proceeds from the Standby Purchasers' exercise of their basic subscription privilege under the rights offering.
Peregrine intends to use anticipated proceeds from the rights offering to initiate bulk sampling at Chidliak via large diameter reverse circulation drilling which is scheduled to commence in 2015. If all of the Warrants that are expected to be issued are exercised, the additional proceeds are anticipated to be sufficient to advance Chidliak through the completion of resource statements for the CH-6, CH-7, and CH-44 kimberlites and for the delivery of a Preliminary Economic Assessment in 2016.
The rights offering and the Standby Agreement are subject to certain conditions including, but not limited to, settlement and execution of the Standby Agreement, the issuance by applicable securities commissions of a receipt for each of the preliminary and final short form prospectuses, and all other necessary regulatory approvals including the approval of the
Further details concerning the rights offering and the procedures to be followed by shareholders is contained in Peregrine's preliminary short form prospectus for the rights offering which is available at www.sedar.com.
The preliminary short form prospectus is subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy securities under the rights offering until a receipt for the final short form prospectus has been issued by the relevant securities regulatory authorities and the
Peregrine is a diamond exploration and development company focused on
An Inferred Mineral Resource of 7.47 million carats in 2.89 million tonnes of kimberlite at a grade pf 2.58 carats per tonne has been defined for a portion of the the CH-6 kimberlite. A program of resource deliniation drilling at the CH-6, CH-7 and CH-44 kimberlites was initiated in July, 2014. In
This sample returned a grade of 2.58 carats per tonne for diamonds larger than the 1.18 mm sieve size. An independent diamond valuation of the resulting 1,013 carat parcel of diamonds returned an average market price of
At its 8,493 hectare
Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in
A key asset being utilized in Peregrine's search for a new Canadian diamond district is a proprietary database acquired from BHP Billiton that contains data from approximately 38,000 kimberlite indicator mineral samples covering approximately three million square kilometres of
For further information on
This news release contains forward-looking statements within the meaning of Canadian securities legislation.
All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, satisfaction of the conditions for the completion of the rights offering, commencement and success of the rights offering, approval for listing of securities issuable in connection with the rights offering on the
These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking statements are made based upon certain assumptions by the Company and other important factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by such statements.
Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the Standby Agreement for the rights offering not being terminated, anticipated proceeds from exercises of Warrants, the price of diamonds, anticipated costs and ability to achieve goals.
Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, but are not limited to: receipt of regulatory approvals; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process; market prices for rough diamonds and the potential impact on the
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to availability and cost of funds, timing and content of work programs, results of exploration activities, interpretation of drilling results and other geological data, risks relating to variations in the diamond grade and kimberlite lithologies; variations in rates of recovery and breakage; variations in diamond valuations and future diamond prices; the state of world diamond markets, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, operational and infrastructure risk and other risks involved in the diamond exploration and development business.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
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