Peregrine Issues 11.6M Shares and Options, Secures $1.74M Capital
Peregrine Gold Limited has successfully raised $1.74 million through its recent entitlement offer, securing key shareholder support to advance exploration at its Tin Can Trend project.
- Raised $1.74 million from entitlement and shortfall offers
- Largest shareholder Yandal Investments contributed $1 million
- Issued 11.6 million new shares and matching options
- Funds earmarked for drilling and exploration at Tin Can Trend
- Directors reserved rights to place remaining shortfall shares
Capital Raise Details
Peregrine Gold Limited (ASX: PGD) announced the results of its pro-rata non-renounceable entitlement offer, which closed on 28 January 2025. The offer allowed eligible shareholders to subscribe for one new share at $0.15 for every four shares held, accompanied by a free attaching option exercisable at $0.25 until December 2027. The company received applications for 11,585,549 shares, raising approximately $1.74 million before costs.
This capital raising fell short of the maximum $2.55 million target but was bolstered by significant support from the company’s largest shareholder, Yandal Investments Pty Ltd, which contributed $1 million. Additionally, company directors invested $300,000, demonstrating internal confidence in the company’s prospects.
Strategic Use of Funds
The proceeds from the entitlement offer are earmarked to accelerate exploration activities at Peregrine’s 100% owned Tin Can Trend project. The company has been refining its targets through geochemical, geophysical, and geological programs following promising drill intercepts in 2024. Technical Director George Merhi emphasized the importance of this funding to recommence drilling amid a favourable gold price environment, which continues to reach record highs.
The issuance of 11,585,549 new options alongside the shares provides investors with additional upside potential, exercisable at a premium price over the next two years. This structure aligns shareholder interests with the company’s exploration success and potential value appreciation.
Shortfall and Future Placement
Despite strong participation, there remains an outstanding shortfall of 5,383,771 shares. The directors have reserved the right to place these shares within three months post-closing at no less than the issue price, potentially providing further capital if market conditions permit. Peregrine has committed to updating the market on the final allocation and issuance of these shares and options.
This measured approach to capital raising reflects a balance between securing necessary funds and managing shareholder dilution, while maintaining flexibility to respond to market appetite.
Market Implications and Outlook
Peregrine’s ability to raise substantial funds from both major shareholders and directors signals strong internal and external confidence in the company’s exploration strategy. The Tin Can Trend project, with its recent encouraging drill results, stands as a key asset that could drive future growth if further drilling confirms resource expansion.
However, as with all exploration companies, the path ahead carries inherent uncertainties. The success of upcoming drilling campaigns will be critical in validating the potential of the Tin Can Trend and justifying the recent capital injection.
Bottom Line?
Peregrine’s fresh capital positions it to advance exploration, but drilling results will ultimately determine its next growth phase.
Questions in the middle?
- How will the company allocate funds between drilling and other exploration activities?
- What is the timeline and expected scale of the next drilling campaign at Tin Can Trend?
- How might the outstanding shortfall placement impact shareholder dilution and share price?
