November 19, 2015
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Peregrine Diamonds Ltd. (“Peregrine
” or the “Company
pleased to announce that it will be offering rights to holders of its
common shares of record at the close of business on November 30, 2015
”), expiring January 26, 2016 (“Expiry Date
The offering will be made in all of the provinces of Canada and in
such other jurisdictions where the Company is eligible to make such
offering. All of Peregrine’s executive officers and directors intend to
fully participate in the rights offering.
Shareholders of record on November 30, 2015 will receive one right for
each common share held. Four (4) rights will entitle the holder to
purchase one common share at a price of $0.10 per common share. Exercise
of the rights and purchase of the common shares must be completed by
2:00 p.m. (Vancouver time) on the Expiry Date. Shareholders who fully
exercise their rights are entitled to subscribe pro rata for additional
common shares, if available, that were not subscribed for initially on
or before the Expiry Date. A fully subscribed rights offering will raise
gross proceeds of $7 million, which will be used to further the
remainder of its 2015/2016 Chidliak Diamond Resource Development
Program, which includes delivery of a Preliminary Economic Assessment,
fund the Company’s 2016 Chidliak work program, advance Botswana
Exploration and for general corporate purposes and expenses. The
proceeds may also be used for 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 November 26,
2015, 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 9:00 a.m.
(Vancouver time) on the Expiry Date.
A rights offering circular together with rights certificates will be
mailed to eligible shareholders on or about December 2, 2015. 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
This news release does not constitute an offer to sell, or the
solicitation of an offer to buy securities in any jurisdiction,
including the United States. The securities offered under the Rights
Offering 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 of the United States, 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, unless an exemption from such registration requirements
is available. Certain institutional accredited investors in the United
States will be permitted to participate in the Rights Offering on a
private placement basis upon satisfying the Company that they qualify
for an exemption from the registration requirements of the Securities
Act and any applicable securities laws of any state of the United
The 558.5 wet tonne bulk sample collected from CH-7 in 2015 consists of
units KIM-2, KIM-3, KIM-4 and KIM-5. Dense Media Separation (“DMS”)
processing to a concentrate at the Saskatchewan Research Council is now
complete for the KIM-3, KIM-4 and KIM-5 samples and final diamond
recovery and sorting is in progress for concentrates from these three
units. DMS processing of the KIM-2 bulk sample material has commenced.
The bulk sample results will provide diamond grades for kimberlite units
KIM-2, KIM-3, KIM-4 and KIM-5, and representative diamond parcels for
Partial results for individual geological units may be released as they
are received. The complete bulk sample result for CH-7 is expected in
early January, 2016 with diamond valuation results expected in the first
quarter of 2016 as previously reported.
On November 17, 2015 Peregrine announced new microdiamond results from
the CH-6 and CH-7 kimberlites. The program was designed to prove up
resource expansion opportunities at the CH-6 and CH-7 kimberlites.
Interpretation of th