PROPOSED PRIVATE PLACEMENT FOR CONTINUED DRILLING AT GOLDEN ARROW
Pacific Ridge Exploration Ltd. ("Pacific Ridge") today announced that it has agreed to sell up to 7,000,000 units (the "Units") by way of private placement to earn gross proceeds of up to $1,050,000. Each Unit, priced at $0.15, will consist of one common share and one non-transferable share purchase warrant. Two warrants will entitle the holder to purchase one common share for a term of 24 months from the closing date at a price of $0.20 per share. Pacific Ridge will pay a fee in Units equal to 7.5% of the number of securities placed, to qualified persons introducing arms-length purchasers under the offering. The private placement, which may close in tranches, and payment of the fees are subject to acceptance for filing by the TSX Venture Exchange.
Approximately $700,000 of the proceeds received from the proposed private placement will be directed to a Phase II drilling program at Pacific Ridge's Golden Arrow project, with the balance being added to working capital.
Phase II Drill Program
The Phase II drilling program calls for approximately 7,600 metres (25,000 feet) of drilling directed to three specific targets within the 18 square kilometre Golden Arrow Property. Based on prior drilling and current geologic modeling, Pacific Ridge has set a minimum one-million ounce gold exploration objective within the high-grade epithermal gold vein systems internal to the Gold Coin and Hidden Hill zones. The Sunrise Zone will also see drilling. Located 500 metres east of Gold Coin, Sunrise is a recently discovered large (1,500 by 500 metres) gold geochemical anomaly that has not seen prior drilling.
The Golden Arrow is an advanced-stage Nevada gold project located in the Walker Lane Trend near Tonopah. Prior workers drill-defined open-ended high-grade epithermal gold veins and zones of bulk-tonnage gold mineralization at the Gold Coin and Hidden Hill zones. The Pacific Ridge ten-hole Phase I drilling program was successful in extending the Gold Coin veins to depths ranging to 152 metres, with one drilled section reporting an average grade of 29.9 g/t gold and 98.9 g/t silver over an average width of 3 metres. Hidden Hill, yet to be drilled by Pacific Ridge, previously reported drill intercepts averaging 26.2 g/t gold over 3 metres along a dip length of 100 metres in one of three feeder veins. The Pacific Ridge exploration objective is to continue to expand dimensions of drill-defined gold mineralization as well as to drill newly defined gold targets at Golden Arrow.
The Golden Arrow exploration program is under the supervision of Pacific Ridge's Vice-President, Exploration, Wayne J. Roberts P.Geo, a Qualified Person as defined within National Policy 43-101. Pacific Ridge has a four-year option to earn up to a 60% interest in Golden Arrow Property from Nevada Sunrise LLP.
"John S. Brock"
John S. Brock
President
For further information, contact Blaine Monaghan, Manager, Investor Relations at 604-687-4951 or toll free 1-800-403-2988, or email ir@badgerandco.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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