Some news for ya....Pacific Ridge Exploration Ltd.: Proposed Private Placements(ccnm)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2010) - PacificRidge Exploration Ltd. (TSX VENTURE:PEX)(the "Company") -
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FORDISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES,AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESESECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLDIN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Pacific Ridge Exploration Ltd. announces two proposedprivate placement financings.
The Company is proposing to sell by way of non-brokered private placement upto 7,500,000 Flow-Through Shares to Canadian resident investors, eachFlow-Though Share priced at
.30 to raise gross proceeds of up to $2,250,000.The Company intends to use the gross proceeds from the sale of the Flow-ThroughShares for Canadian Exploration Expenses ("CEE"), within the meaning of theIncome Tax Act (Canada), with the Company using its best efforts to ensure thatsuch CEE qualify as a "flow-through mining expenditure" for purposes of theIncome Tax Act (Canada), related to the exploration during 2011 of the Company'smineral exploration projects located in Yukon, Canada. The Company expects torenounce such CEE with an effective date of December 31, 2010.
The Company is also proposing to sell by way of non-brokered privateplacement up to 7,500,000 non-flow-through units (the "Units"), each Unit pricedat
.30 to raise gross proceeds of up to $2,250,000. Each Unit is comprised ofone common share and one-half of one whole transferable share purchase warrant,each whole warrant (a "Warrant") entitling the purchase of one common share at aprice of
.45 per share for 12 months, subject to the following accelerationprovision: if at any time after 4 months from the date of issue of the Warrantsthe closing market price of the Company's common shares on the TSX VentureExchange is greater than
.60 per share for 20 consecutive trading days (the"Triggering Event"), the Company may, within 5 days of the Triggering Event,accelerate the expiry date of the Warrants by giving notice thereof to theholders of the Warrants, by way of press release, in which event the Warrantswill expire on the 21st day after the date on which such notice isgiven. The Company intends to use the gross proceeds from the sale of the Unitsfor general working capital purposes and development of the Company's mineralproperty portfolio.
In connection with the private placements, the Company is proposing to payfinders' fees in cash (6%) or shares equal in number to 6%, and issue thatnumber of Finder's Warrants, each having the same terms and conditions as theWarrants, as is equal in number to 6%, of the number of Flow-Through Shares andUnits purchased by investors that may be introduced to the Company byfinders.
The private placements and payment of finders' fees are subject to regulatoryapproval.
Proceeds derived from the placements will be largely directed to the 2011exploration programs at the Mariposa property, located in the White Gold, SouthKlondike area of Yukon where the Phase I drilling program plus additionalsurface exploration is currently budgeted at $2,800,000. Exploration programs onother holdings in the Yukon are budgeted at $650,000.
On behalf of the Board of Directors,
John S. Brock, President, Pacific Ridge Exploration Ltd.