Pacific Ridge Announces Brokered Private Placement
Pacific Ridge Announces Brokered Private
Placement
Vancouver, British Columbia--(Newsfile Corp. - March 17, 2022) - Pacific Ridge Exploration Ltd. (TSXV:
PEX) (OTCQB: PEXZF) ("Pacific Ridge" or the "Company") is pleased to announce that it has entered
into an agreement with M Partners Inc. and Red Cloud Securities Inc., as co-lead agents and joint book
runners ("Agents"), in connection with a "best efforts" brokered private placement offering of up to
$6,398,000 (the "Offering").
Proceeds from this Offering will be used for the planned 5,000-metre diamond drill program at Pacific
Ridge's flagship Kliyul copper-gold project, located in the prolific Quesnel Trough in northwest British
Columbia (see Figure 1), for exploration on the Company's other projects, and for general working
capital.
The Offering will be comprised of 16.0M charity flow-through units ("CFT Units") at a price of $0.328 and
5.0M common share units ("CS Units") at a price of $0.23. The CFT Units issued in connection with the
Offering shall consist of one flow-through common share of the Company and one-half of one common
share purchase warrant (each whole warrant, a "Warrant"). The CS Units issued in connection with the
Offering shall consist of one non-flow-through common share of the Company and one-half of one
Warrant. Each Warrant will be exercisable to purchase one additional non-flow-through common share at
an exercise price of $0.35 for a period of 24 months. Pacific Ridge will grant the Agents an option (the
"Over-Allotment Option") to increase the size of the Offering by up to an additional 15% of the Offering,
exercisable in whole or in part at any time up to 48 hours prior to the closing date of the Offering.
Pacific Ridge has agreed to pay to the Agents a cash commission equal to 6% of the gross proceeds of
the Offering. In addition, the Company has agreed to issue to the Agents compensation warrants of the
Company exercisable for a period of 24 months, to acquire in aggregate that number of non-flow-through
common shares of the Company which is equal to 6% of the number of CFT Units and CS Units sold
under the Offering at a price of $0.23. The Agents' cash commission and compensation warrants will be
reduced to 3% from investors on a president's list.
All proceeds received from the sale of CFT Units will be used to incur eligible expenses ("Qualifying
Expenses") that are "Canadian exploration expenses," within the meaning of subsection 66.1(6) of the
Income Tax Act (Canada), which will also qualify as "flow-through mining expenditures," within the
meaning of s. 127(9) of the Income Tax Act (Canada) and will be eligible for the BC 20% Flow-Through
Share Tax Credit.
The Offering and payment of finder's fees are subject to regulatory approval. It is expected that the
closing of the Offering will occur on or about April 19, 2022 (the "Closing Date").
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such registration is available.
Figure 1:
Location of Kliyul
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5460/117183_f43323d8c436b95c_001full.jpg
About the Kliyul Project
Over 60 sq-km in size, Kliyul is located within the prolific Quesnel Trough in British Columbia, 50 km
southeast of Centerra Gold Inc's Kemess mine and 5 km from the Omineca mining road in one of the
most prospective areas for copper and gold porphyries in British Columbia. The Project contains five
main target areas: the Kliyul Main Zone ("KMZ"), Bap Ridge, Ginger, M39, and Paprika, each
representing an interpreted porphyry centre over a 4 km northwest striking trend. KMZ is the most
intensely explored of these, with 36 drill holes (7,068 m) drilled since 1974, most of which targeted a
near-surface copper-gold+magnetite zone. Deeper drilling in 2006 and 2015 encountered porphyry
copper-gold mineralization.
In 2021, Pacific Ridge completed 1,544 m in three diamond drill holes in the Company's first ever drill
program at Kliyul. Every drill hole returned significant copper-gold mineralization (see Table 1). Hole KLI-
21-037 returned 566.7 m of 0.48% copper equivalent (CuEq) or 0.76 g/t (grams per tonne) gold
equivalent (AuEq), including 316.7 m of 0.75% CuEq or 1.17 g/t AuEq. Pacific Ridge's 2021 drill
campaign at Kliyul successfully extended mineralization at KMZ to the west and at depth. Mineralization
at KMZ remains open in all directions, and to depth.
Pacific Ridge is planning to drill a minimum of 5,000 m at Kliyul in 2022 and anticipates that drilling will
be underway by late June, early July. The focus of the drill campaign will be on expanding KMZ along
strike and at depth. The Company also plans to test the Kliyul East and Kliyul West targets, which have
never been drill tested. Both targets have high chargeability and moderate to high resistivity geophysical
signatures, similar to KMZ. While the Kliyul West target is concealed under till cover, at Kliyul East there
is outcropping porphyry-style alteration and encouraging geochemical pathfinders were encountered in
surface sampling. In addition to drilling KMZ, Kliyul East and Kliyul West, an IP geophysical survey,
possibly followed by drilling, is planned at Bap Ridge. Bap Ridge is one of five interpreted porphyry
centres that occur along a 4 km northwest-striking mineralized trend. Pacific Ridge is also planning an
airborne magnetic survey to help refine the understanding of the structure, geology and alteration over
this highly prospective trend.
The Project displays classic porphyry copper-gold deposit style alteration and mineralization patterns.
Geological interpretation, supported by a variety of geophysical surveys, including IP, magnetics and
magnetotellurics, suggest the potential to significantly expand the size of the Kliyul mineralized system.
Table 1
2021 Kliyul Assay Results Summary
Hole
From(m)
To(m)
Width(m)
Cu(%)
Au(g/t)
CuEq(%)
AuEq(g/t)
KLI-21-036
12.0
449.0*
437.0
0.22
0.60
0.61
0.96
Includes
12.0
65.0
53.0
0.22
0.83
0.75
1.17
And
12.0
33.0
21.0
0.34
1.30
1.17
1.84
And
47.0
65.0
18.0
0.22
0.89
0.79
1.23
Includes
143.3
435.0
291.7
0.28
0.74
0.75
1.18
And
294.0
435.0
141.0
0.36
1.11
1.07
1.68
KLI-21-037
12.3
579.0*
566.7
0.20
0.44
0.48
0.76
Includes
12.3
329.0
316.7
0.30
0.70
0.75
1.17
And
62.0
73.0
11.0
0.42
1.22
1.20
1.88
And
90.0
122.0
32.0
0.52
0.88
1.08
1.70
And
146.0
161.0
15.0
0.39
1.19
1.16
1.81
And
238.8
288.1
49.4
0.66
1.50
1.62
2.53
And
243.9
268.0
24.1
1.09
2.21
2.50
3.92
KLI-21-038
9.0
516.0*
507.0
0.15
0.39
0.40
0.63
Includes
9.0
351.0
342.0
0.17
0.50
0.50
0.78
And
9.0
43.0
34.0
0.27
0.72
0.73
1.15
And
108.0
136.0
28.0
0.21
0.60
0.59
0.93
And
153.1
186.0
32.9
0.24
0.78
0.73
1.15
And
261.0
349.0
88.0
0.26
0.84
0.80
1.25
* End of hole
CuEq = ((Cu%) x $Cu x 22.0462) + (Au(g/t) x $Au x 0.032151)) / ($Cu x 22.0462)
AuEq = ((Cu%) x $Cu x 22.0462) + (Au(g/t) x $Au x 0.032151)) / ($Au x 0.032151)
Commodity prices:
$Cu = US$4.00/lb and $Au = US$1,750/oz.
Factors: 22.0462 = Cu% to lbs per tonne, and 0.032151 = Au g/t to troy oz per tonne.
Recovery is assumed to be 100% - there has been no metallurgical testing on Kliyul mineralization
Pacific Ridge has the right to earn a 51% interest in the Kliyul and Redton projects from AuRico Metals
Inc., a wholly owned subsidiary of Centerra Gold Inc., by making cash payments totaling $100,000,
issuing 2.0 million shares and spending $3.5 million on exploration by December 31, 2023. The
Company then has the right to increase its interest in the properties to 75% by making additional
payments totaling $60,000, issuing 1.5 million shares and completing an additional $3.5 million in
exploration by December 31, 2025.
About Pacific Ridge
Our goal is to become one of the leading copper-gold exploration companies in British Columbia.
Pacific Ridge's flagship project is the Kliyul copper-gold project, located in the Quesnel Trough,
approximately 50 km southeast of Centerra Gold Inc's Kemess mine. In addition to Kliyul, the Company's
project portfolio includes the RDP copper-gold project (optioned to Antofagasta Minerals S.A.), the Onjo
copper-gold project, and the Redton copper-gold project, all located in British Columbia. Pacific Ridge
will continue to search for projects that offer discovery opportunity in our regions of expertise.
On behalf of the Board of Directors,
"Blaine Monaghan"
Blaine Monaghan
President & CEO
Pacific Ridge Exploration Ltd.
Corporate Contact:
Blaine Monaghan
President & CEO
Tel: (604) 687-4951
www.pacificridgeexploration.com
https://www.linkedin.com/company/pacific-ridge-exploration-ltd-pex-
https://twitter.com/PacRidge_PEX
Investor Contact:
G2 Consultants Corp.
Telephone: +1 778-678-9050
Email:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
The technical information contained within this News Release has been reviewed and approved by
Gerald G. Carlson, Ph.D., P.Eng., Executive Chairman of Pacific Ridge and Qualified Person as
defined by National Instrument 43-101 policy.
Forward-Looking Information:
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than statements of historical facts,
that address exploration drilling and other activities and events or developments that Pacific Ridge
Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. Forward-looking
statements in this news release include statements
regarding the Offering, the planned 5,000 m drill
program at Kliyul, the timing of the drill program, and the IP and airborne magnetic survey. Although
Pacific Ridge believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those forward-looking statements. Factors that
could cause actual results to differ materially from those in forward looking statements include market
prices, exploration successes, and continued availability of capital and financing and general
economic, market or business conditions. These statements are based on a number of assumptions
including, among other things, assumptions regarding general business and economic conditions,
that one of the options will be exercised, the ability of Pacific Ridge and other parties to satisfy stock
exchange and other regulatory requirements in a timely manner, the availability of financing for
Pacific Ridge's proposed programs on reasonable terms, and the ability of third party service
providers to deliver services in a timely manner. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or developments may differ materially from
those projected in the forward-looking statements. Pacific Ridge does not assume any obligation to
update or revise its forward-looking statements, whether as a result of new information, future events or
otherwise, except as required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/117183