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
On Behalf of Peregrine Diamonds Ltd.
Eric Friedland, President
On Behalf of Dunsmuir Ventures Ltd.
Art Ettlinger, President, CEO and Director
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.
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