Peregrine Raises $3.36 Million Flow-Through At $2.00 Per Share

August 18, 2004
Peregrine Diamonds Ltd. (the “Company”) is pleased to announce that it has closed its flow-through share financing previously announced on July 19, 2004 for gross proceeds of $3,360,000.. A total of 1.51 million Flow-Through Special Warrants at $2.00 per Special Warrant were sold through Dundee Securities Corporation for a total of $3,025,000 and 167,500 Flow-Through Special Warrants at $2.00 per Special Warrant were purchased by Endeavour Flow-Through Limited Partnership (2004) for a total of $335,000. Each Flow-Through Special Warrant is convertible into one Flow-Through Share of the Company. Additionally, BHP Billiton Diamonds Inc. has committed to buying an amount equal to a minimum of 20% over and above the total of these financings representing a significant contribution of non-Flow Through dollars. An announcement will be made once the BHP Billiton financing has been closed.

The Company plans to use the net proceeds to continue with its exploration programs on its Lac de Gras and Nunavut properties.

On July 19, 2004 it was announced that Peregrine and Dunsmuir Ventures Ltd. agreed to merge to form a stronger Canadian diamond explorer. Once the merger is completed, anticipated towards the end of this year, the new Peregrine Diamonds Ltd. will have a treasury of approximately $14 million and will be one of the largest junior company landholders in the Lac de Gras area and the Western Churchill Geological Province in Canada. Its strong treasury will allow Peregrine to proceed with a re-engineered 200-tonne bulk sampling program of the DO-27 pipe as well as resume a diamond drilling program on the Nanuq project. The company will also be able to aggressively explore new diamond opportunities in Canada, the world’s fastest growing diamond producer, and identify advanced exploration targets for deployment of the Falcon(tm) airborne gravity gradiometer system, for which Peregrine has exclusive use of 40,000 line-kilometres of annual capacity for all of North, Central, and South America through its alliance with BHP Billiton.

For further information about both companies please contact Eric Friedland at 604-408-8880 and Art Ettlinger at 604-681-6311 or visit each company’s web site at: www.peregrinediamonds.com and www.dunsmuirventures.com.

On Behalf of Peregrine Diamonds Ltd.

“Eric Friedland”

Eric Friedland, President
Email: eric@pdiam.com


On Behalf of Dunsmuir Ventures Ltd.

“Art Ettlinger”

Art Ettlinger, President, CEO and Director
Email: aettlinger@dunsmuirventures.com

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Back to the News Releases page