Pacific Ridge Exploration (PEX.V) has engaged Dorado Drilling out of Vernon to complete a 5,000 meter diamond drill program on the company’s flagship Kliyul copper-gold project in British Columbia. Drilling will likely start at the end of June.
The 2022 drill program will be much larger than the 2021 program which had to be cut short at the end of the exploration season with just over 1,500 meters completed. The upcoming 5,000 meter drill program will focus on expanding the Kliyul Main Zone along strike and at depth to get a better understanding of the potential size of the mineralized area. Additionally, the company will also drill-test the Kliyul West and Kliyul East targets. At Kliyul East, the company has encountered porphyry-style alteration and the traditional pathfinder elements so it makes sense to punch a few holes there.
To fund these drill programs Pacific Ridge has announced a brokered financing lead by M Partners and Red Cloud Securities on a best-efforts basis. The financing will consist of 16 million charity flow-through units at an issue price of C$0.328 and 5 million common units priced at C$0.23. The non-flow through units will consist of one share and half a warrant with each full warrant entitling the owner to acquire an additional share of Pacific Ridge at a price of C$0.35 for a period of 24 months. The charity flow-through units will contain the same warrants.
Should the company succeed in placing the 21 million in charity flow-through and non-flow through shares, it will raise a total of C$6.4M before expenses, and likely around C$6M after all expenses. That should be sufficient to cover the upcoming drill program and to cover all working capital needs for this year.
Disclosure: The author has no position in Pacific Ridge Exploration but may participate in the financing. Pacific Ridge is a sponsor of the website. Please read our disclaimer.