Peregrine funded for Pilbara exploration following investor support for $3m entitlement offer
Link copied to
Peregrine is now funded to carry out exploration at its portfolio of projects in Western Australia’s Pilbara region after raising $3m through its fully-underwritten entitlement offer.
This was due to strong support from existing shareholders who subscribed for 3,978,481 new shares, or about 49.8% of the shares offered under the entitlement offer of 1 new share priced at 38c each for every six shares held.
The remaining 4,016,041 shares were placed with the underwriters Argonaut PCF, which had reached sub-underwriting agreements with entities associated with technical director George Merhi plus substantial shareholder and successful prospector Mark Creasy’s Yandal Investments.
Peregrine Gold (ASX:PGD) will use the funds raised to carry out costean sampling and diamond drilling at its Newman gold project, continue ongoing exploration including aerial electromagnetic surveying at the Mallina gold project, and exploration activities at the Pilgangoora North, Stoney Creek, Rocklea and East Pilbara projects.
The entitlement offer includes one free attaching option exercisable at 55c on or before 31 March 2026 for every two new shares applied for an issued.
Exploration at Newman will undoubtedly seek to follow-up on the initial successes that the company experienced in August last year where shallow drilling at the Peninsula prospect returned big chunks of gold.
This was quickly followed by rock chip sampling at the Birdsnest prospect returning ultra-high gold and silver grades of 122,497 grams per tonne (g/t) and 26,234g/t respectively.
While subsequent RC drilling failed to excite, Merhi was unfazed, telling Stockhead in January this year that rich, high grade gold shoots were easy to miss.
He noted that the company will use close spaced costeans over soil anomalies to test for quartz veins before following up on such hits with “precise surgical diamond drilling”.
At the Mallina project, the 845-line km EM survey will cover an area that is characterised by extremely strong magnetic anomalies and strong gravity anomalies though no outcrops have been discovered.
This article was developed in collaboration with Peregrine Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.