Peregrine Gold Limited Launches Entitlement Issue to Boost Exploration Funding
PGD (PGD) Share Update November 2024 Monday 4th
Peregrine Gold Announces Entitlement Issue to Raise $2.5 Million
Peregrine Gold Limited has announced a new entitlement issue aimed at raising up to $2.5 million to fund its exploration activities and working capital.
Instant Summary:
- Entitlement issue of 1 share for every 4 shares held at $0.15 per share.
- Includes 1 free attaching new option for every share applied for.
- Aims to raise up to $2,545,440 before costs.
- Funds to support exploration at Newman and Mallina Gold Projects.
Entitlement Issue Details
Peregrine Gold Limited has launched a pro-rata non-renounceable entitlement issue, offering 1 new share for every 4 shares held by shareholders at an issue price of $0.15 per share. Additionally, shareholders will receive 1 free attaching new option for every new share subscribed for, exercisable at $0.25 and expiring on 13 December 2027. The company aims to raise up to $2,545,440 before costs through this offer.
The entitlement issue is designed to provide existing shareholders with an opportunity to increase their investment in the company while supporting its ongoing exploration efforts. The funds raised will primarily be used for exploration activities at the Newman and Mallina Gold Projects, as well as for general working capital.
Use of Funds
The funds from the entitlement issue are earmarked for several key activities. Approximately $1,010,900 will be allocated to general exploration activities at the Newman Gold Project, with an additional $600,000 dedicated to drilling programs. A further $100,000 will be used for an IP survey at the Newman site. The Mallina Gold Project will see $445,500 directed towards ongoing exploration, including an aerial electromagnetic survey. The remaining funds will be used for working capital and to cover the costs of the offer.
Participation and Risks
Eligible shareholders can participate by taking up their entitlement in full or in part, with the option to apply for additional shares through a shortfall offer if available. The offer is not extended to shareholders outside Australia and New Zealand due to regulatory constraints.
Investors are advised that the securities offered should be considered highly speculative, with the company highlighting the inherent risks associated with mineral exploration and market conditions. The prospectus emphasizes the importance of consulting professional advisers before participating.
The entitlement issue is expected to provide Peregrine Gold with the necessary capital to advance its exploration projects, potentially leading to significant discoveries that could enhance shareholder value. However, the speculative nature of mineral exploration means that the outcome is uncertain, and the market reaction will depend on the perceived success of these exploration activities.
Investor Reaction:
Analysts are likely to view the entitlement issue as a positive step towards securing the financial resources needed for Peregrine Gold's ambitious exploration plans. However, the speculative nature of the investment and the potential for dilution may temper enthusiasm among some investors.
Conclusion:
Investors should carefully consider the risks and opportunities presented by Peregrine Gold's entitlement issue. With the potential for significant exploration success, the company's strategic focus on its gold projects could yield substantial returns, but the inherent uncertainties of the mining sector must be acknowledged.