January 28, 2016
Peregrine Diamonds Ltd. (“Peregrine
”) is pleased to announce that it has received gross proceeds of $5.64 million from its rights offering which was announced on November 19, 2015 and completed on January 26, 2016.
An aggregate of 56,412,307 common shares of Peregrine were issued pursuant to the rights offering.
As a result of the completion of the rights offering, a total of 339,075,905 common shares of Peregrine are now issued and outstanding. No U.S. Registration
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. 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 U.S. 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 were 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 U.S. Securities Act and any applicable securities laws of any state of the United States. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States.
ABOUT PEREGRINE DIAMONDS
Peregrine Diamonds is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.
The Company’s core asset is its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut. An Inferred Mineral Resource of 8.57 million carats in 3.32 million tonnes of kimberlite at a grade of 2.58 carats per tonne has been defined for a portion of the CH-6 kimberlite. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat. A Target for Further Exploration (“TFFE”) of 3.72 to 6.01 million tonnes to a depth of 290 metres has been defined at the CH-7 kimberlite, where a 2015 bulk sample returned a grade of 0.88 carats per tonne. A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has also been defined at the CH-44 kimberlite pipe. The TFFEs identified above are conceptual in nature and are not Mineral Resources. It is uncertain whether further exploration will result in any of these tonnages being delineated as Mineral Resources.
In addition, Peregrine now controls eight prospective diamond prospecting licenses in Botswana that cover 574,600 hectares. The Company is actively exploring these licences.
Peregrine Exploration, a wholly owned subsidiary of Peregrine Diamonds holds the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth. Peregrine Exploration is also active in developing new diamond exploration plays in North America.
For information on see the technical reports, “2015 Technical Report for the Chidliak Project, ” dated February 23, 2015, and “Peregrine Diamonds Ltd. Lac de Gras Project Northwest Territories, Canada ” dated July 15, 2014, both of which are available on SEDAR and the Company’s website.
For further information, please visit www.pdiam.com
or contact Mr. Eric Friedland, Executive Chairman, Mr. Tom Peregoodoff, President and CEO, Dr. Herman Grütter, Vice President, Technical Services, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at email@example.com
. Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Canadian securities legislation. All statements, other than statements of historical fact,