Business
Pacific Ridge Announces Closing of C$6.0M Bought Deal Private Placement
Vancouver, British Columbia--(Newsfile Corp. - December 19, 2022) - Pacific Ridge Exploration L...
About this update from Pacific Ridge Exploration Ltd.
[{"type":"text","content":"Pacific Ridge Announces Closing of C$6.0M Bought Deal Private PlacementVancouver, British Columbia--(Newsfile Corp. - December 19, 2022) - Pacific Ridge Exploration Ltd. (TSXV: PEX) (OTCQB: PEXZF) (\"Pacific Ridge\" or the \"Company\") is pleased to announce the closing of its previously announced \"bought deal\" private placement (the \"Offering\") of flow-through units of the Company (each, a \"FT Unit\") underwritten by Red Cloud Securities Inc., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters comprised of Beacon Securities Limited and M Partners Inc. (collectively, the \"Underwriters\"). Pursuant to the Offering, the Company sold 18,750,000 FT Units at a price of C$0.32 per FT Unit, including 3,125,000 FT Units issued pursuant to the exercise of the Underwriters' over-allotment option for aggregate gross proceeds to the Company of $6,000,000.Each FT Unit consists of one common share of the Company issued as a \"flow-through share\" within the meaning of the Income Tax Act (Canada) (each, a \"FT Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant entitles the holder to purchase one common share of the Company (each, a \"Warrant Share\") at a price of C$0.40 at any time on or before December 19, 2024. The FT Shares, Warrants and Warrant Shares will be subject to a hold period ending on April 20, 2023.Proceeds from the sale of FT Shares will be used to incur \"Canadian exploration expenses\" as defined in subsection 66.1(6) of the Income Tax Act (Canada) and \"flow through mining expenditures\" as defined in subsection 127(9) of the Income Tax Act (Canada). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares. The Company intends to use the proceeds raised from the Offering for a diamond drill program at the Company's flagship Kliyul copper-gold project (\"Kliyul\") and at the Chuchi copper-gold project (\"Chuchi\") in 2023. Kliyul and Chuchi are located in the prolific Quesnel Trough in northcentral British Columbia. Pacific Ridge paid to the Underwriters a total cash commission of C$360,000 and issued to the Underwriters 1,125,000 compensation warrants of the Company, ...