Pacific Ridge Closes $7.4 Million Financing; Size of Drill Program at Kliyul Copper-Gold Project to Be Increased
Pacific Ridge Closes $7.4 Million Financing;
Size of Drill Program at Kliyul Copper-Gold
Project to Be Increased
Vancouver, British Columbia--(Newsfile Corp. - April 22, 2022) - Pacific Ridge Exploration Ltd. (TSXV:
PEX) (OTCQB: PEXZF) ("Pacific Ridge" or the "Company") is pleased to announce that it has closed
the previously announced "best efforts" brokered private placement (the "Financing") with M Partners
Inc. and Red Cloud Securities Inc., co-lead agents and joint book runners ("Agents"), and raised a total
of $7,431,200 through the issuance of 19,150,000 charity flow-through units ("CFT Units") at a price of
$0.328 per CFT Unit and 5,000,000 common share units ("CS Units") at a price of $0.23 per CS Unit,
including exercise in full of the Agent's 15% over-allotment option.
Proceeds from the Financing are intended to be used for a planned 6,000-metre diamond drill program
at Pacific Ridge's flagship Kliyul copper-gold project, increased from a planned 5,000-metre diamond
drill program, for exploration on the Company's other projects, and for general working capital.
"With the Financing closed we are well positioned to execute the largest ever diamond drill program at
the Kliyul copper-gold project,"
said Blaine Monaghan, President & CEO.
"We look forward to following
up on last year's results with the goal of expanding the mineralized footprint at the Kliyul Main Zone
laterally and to depth. In addition to further drilling at the Kliyul Main Zone, we will also test the Kliyul
West and Kliyul East targets, which have never been drilled. We would like to thank our existing
shareholders, including Crescat Capital, and welcome new shareholders. 2022 promises to be a very
exciting year!"
The CFT Units issued in connection with the Financing 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 Financing consist of one non-flow-through common share of
Pacific Ridge 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.
In connection with the Financing, Pacific Ridge has paid the Agents an aggregate cash commission of
$289,770 and issued the Agents an aggregate of 1,299,999 compensation warrants. Each
compensation warrant is exercisable to purchase one common share of the Company at a price of
$0.23 for a period of 24 months. All securities issued in connection with the Financing carry a legend
restricting trading of the securities until August 22, 2022. The Financing and payment of Agents' fees are
subject to TSX Venture Exchange final acceptance.
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.
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 U.S. state securities laws
and may not be offered or sold within the United States, or to or for the account or benefit of a U.S.
person or a person in the United States, unless registered under the U.S. Securities Act and applicable
U.S. state securities laws, or an exemption from such registration is available.
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 (see Figure 1). 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.
Figure 1:
Location of Kliyul
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5460/121317_45af1dd064696bf4_001full.jpg
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 6,000 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 laterally
and to 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 British Columbia's leading copper-gold exploration company. 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 use of proceeds of the Financing,
the planned 6,000 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 the right to earn an interest in the Kliyul and Redton projects
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/121317