Peregrine Gold Raises $2.55M with Yandal’s $1M Commitment
Peregrine Gold secures a significant $1 million commitment from its largest shareholder, Yandal Investments, strengthening its entitlement offer ahead of the project sale to Capricorn Metals.
- Yandal Investments increases firm commitment to $1 million
- Entitlement offer aims to raise approximately $2.55 million
- Offer closing date set for 28 January 2025
- Sale of Deadman Flat and Perry Creek Project to Capricorn Metals announced
- Indicative timetable for offer process confirmed
Peregrine Gold Secures Strong Shareholder Backing
Peregrine Gold Limited (ASX: PGD) has announced a substantial increase in commitment from its largest shareholder, Yandal Investments Pty Ltd, controlled by renowned prospector Mark Creasy. The firm commitment now stands at $1 million, significantly higher than the initial entitlement of $291,333, with an additional $708,667 earmarked to cover any shortfall in the ongoing non-renounceable entitlement offer.
This enhanced backing from Yandal Investments signals robust confidence in Peregrine Gold’s capital raising strategy, which aims to raise up to approximately $2.55 million. The entitlement offer is a critical component of the company’s funding plans as it navigates upcoming strategic developments.
Context of the Offer and Project Sale
The timing of this announcement coincides with Peregrine Gold’s proposed sale of the Deadman Flat and Perry Creek Project to Capricorn Metals Ltd. While details on the financial impact of the sale remain limited, the transaction is expected to reshape Peregrine’s asset portfolio and potentially strengthen its balance sheet.
Investors should note that the entitlement offer closing date is set for Tuesday, 28 January 2025, with results to be announced on 3 February 2025. Shares issued under the offer are scheduled for quotation on 4 February 2025, marking a swift progression from capital raising to market trading.
Implications for Peregrine Gold’s Future
The increased participation by Yandal Investments not only provides immediate financial support but also underscores the alignment between Peregrine’s management and its major shareholder. Mark Creasy’s involvement is often viewed positively by the market, given his track record in the mining sector.
However, the full ramifications of the project sale and how the raised capital will be deployed remain areas for close scrutiny. The company’s ability to leverage this funding to advance its exploration or development pipeline will be critical in shaping investor sentiment in the coming months.
Bottom Line?
Yandal’s boosted commitment strengthens Peregrine’s capital position, but the next moves on project sales and fund deployment will be pivotal.
Questions in the middle?
- What are the detailed terms and expected proceeds from the Deadman Flat and Perry Creek Project sale?
- How does Peregrine plan to allocate the funds raised through the entitlement offer?
- Will Yandal Investments increase its stake further beyond the current commitment?
