TORONTO - Peregrine Metals has completed its initial public offering (IPO) of 20 million units priced at $1.00 each for gross proceeds of $20 million. Each unit consists of one common share and one-half of one share purchase warrant. The IPO was led by GMP Securities and Dundee Securities and included Canaccord Financial. It they exercise their over-allotment option, a total of $23 million may be raised.
Peregrine plans to use the net proceeds of the IPO to develop its Altar copper project in Argentina, close to the border with Chile. The property is located at relatively low elevations and would have access to deep water ports on the Chilean coast. Altar is a large Miocene-aged porphyry copper-gold-molybdenum deposit. Characteristically, it is made up of sulphides with a 50- to 150-metre-thick high-grade (up to >1.0% Cu) chalcocite enrichment zone within the upper part of a very large body of chalcopyrite-dominant mineralization.
Peregrine (www.PeregrineMetals.com) optioned 100% of the property from Rio Tinto in 2005 and initiated an aggressive exploration and drilling program that same year. Peregrine is set to gain full control of the project after making a final cash option payment of $1.65 million to Rio Tinto in July 2008. Rio Tinto retains no back-in rights, pre-emptive rights on sale or other restrictions, noted Peregrine.
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