January 19, 2009
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) is pleased to
announce that it will be offering rights to holders of its common shares
of record at the close of business on January 27, 2009 (the “Record
Date”), expiring February 19, 2009 (“Expiry Date”). The offering will be
made in all of the provinces of Canada (except in Québec) and in such
other jurisdictions where the Company is eligible to make such offering.
Shareholders of record on January 27, 2009 will receive one right for
each common share held. Seven (7) rights will entitle the holder to
purchase one unit at a price of $0.35 per unit. Each unit will be
comprised of one common share and one-half of a common share purchase
warrant (“Warrant”). Each whole Warrant will entitle the holder to
purchase one common share for a term of two years following the Expiry
Date of the rights offering at a price of $1.00 during the first year
and $1.50 during the second year of the term. Exercise of the rights and
purchase of the units must be completed by 5:00 p.m. (Toronto time) on
the Expiry Date. Shareholders who fully exercise their rights are
entitled to subscribe pro rata for additional Units, if available, that
were not subscribed for initially on or before the Expiry Date. A fully
subscribed rights offering will raise gross proceeds of $3,498,323,
which will be used for exploration expenses on the Company’s mineral
properties and general working capital.
The common shares of the Company are expected to commence trading on the
TSX on an ex-rights basis at the opening of business on January 23,
2009, meaning that common shares purchased on, or following that date
will not be entitled to receive the rights under this offering. At that
time, the rights are expected to be posted for trading on the TSX on a
“when issued” basis and will thereafter trade under the symbol “PGD.RT”.
Trading of the rights is expected to continue until 12:00 noon (Toronto
time) on the Expiry Date.
A rights offering circular together with rights certificates will be
mailed to eligible shareholders on or about January 28, 2009. Registered
shareholders wishing to exercise their rights must forward the
completed rights certificates, along with the applicable funds to
Computershare Investor Services Inc. by the Expiry Date. Shareholders
who own their shares through an intermediary, such as a bank, trust
company, securities dealer or broker, will receive materials and
instructions from their intermediary.
No U.S. Registration or Sales
The securities offered will not be or have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or the
securities laws of any state, and may not be offered or sold in the
United States or to, or for the account or benefit of, any U.S. Person
(as defined in Regulation S of the Securities Act) or person in the
United States. Neither the rights offering circular nor the rights
certificates are being sent to any person in the United States, U.S.
Person, or person holding for the account or benefit of any U.S. Person
or person in the United States.
For further information, please contact Brooke Clements, President, Eric
Friedland, CEO, or Peregrine Diamonds Investor Relations, at
604-408-8880 or at
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