Peregrine completes Can$8.4 million private placement
Peregrine Diamonds Ltd. (“Peregrine”) (TSX:PGD) is pleased to announce the completion of a non-brokered private placement of 3,000,000 common shares at a price of $2.80 per share for proceeds of $8.4 million (the “Private Placement”). The common shares issued under the Private Placement were sold on a “flow-through” basis pursuant to the Income Tax Act (Canada) and purchased by institutional investors, whose common advisor is a deemed insider of Peregrine, and the deemed insider’s affiliates and associates. No commission was paid on this Private Placement.
The common shares issued under the Private Placement are subject to a hold period that expires on July 5, 2011. Proceeds from the Private Placement will be used for Peregrine’s mineral exploration projects in Canada.
The Private Placement is subject to final regulatory approval. This news release has been issued concurrent with the closing and less than 21 days before the closing of the Private Placement as the financing was negotiated recently and contractual arrangements were not entered into until the closing date.