Private placements closedPacific Ridge Closes Non-Brokered Private Placements and Raises $1,036,000 (ccnm)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2010) -Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX)(the "Company") ispleased to announce that the non-brokered private placements ofFlow-Through Units and Non-Flow-Through Units announced on July 28, 2010have closed.
The Company raised $532,000 pursuant to the issuance of 3,800,000Flow-Through Units priced at
.14 per unit. The Non-Flow-Throughprivate placement was oversubscribed with the Company receiving grossproceeds of $504,000 pursuant to the issuance of 4,200,000Non-Flow-Through Units priced at
.12 per unit.
Each Flow-Through Unit was comprised of one flow-through share andone-half of one whole non-flow-through transferable 12-month commonshare purchase warrant, with one whole warrant (a "Warrant") allowingthe purchase of an additional non-flow-through share at a price of
.15per share. Each Non-Flow-Through Unit was comprised of onenon-flow-through share and one Warrant.
The shares and Warrants issued are subject to a hold period expiringDecember 21, 2010. Finders Fees totaling $28,239.60 cash and 30,000shares are payable in respect of the private placements closing. Theprivate placements are subject to regulatory approval.
The Company intends to use the gross proceeds from the sale ofFlow-Through Shares for Canadian Exploration Expenses ("CEE"), withinthe meaning of the Income Tax Act (Canada) ("ITA"), with the Companyusing its best efforts to ensure that such CEE qualify as a"flow-through mining expenditure" for the purpose of the ITA, related tothe exploration of the Company's mineral exploration projects locatedin Yukon Territory, Canada. The CEE will qualify for the 15% Federal taxcredit available to the individual resident anywhere in Canada. TheCompany expects to renounce such Canadian Exploration Expenses with aneffective date of December 31, 2010.
With closing of the offerings, the Company has 34,252,576 shares issued and outstanding.
As was recently reported, exploration of the Company's Klondike Katemineral property holdings in the Yukon's South Klondike has beenunderway since June with an expanded program now warranted on theMariposa Property. Geochemical soil sampling continues with the ultimateextent of already established gold geochemical anomalies remaining tobe fully delineated. Back-hoe trenching of defined gold anomalies hascommenced.
John S. Brock, President