Pacific Ridge Exploration Ltd. (the "Company") (TSX VENTURE:PEX) has amended its agreement with Dundee Securities Corporation and Haywood Securities Inc. (the "Agents"), announced on May 31, 2007, with the addition to the Offering of a concurrent non-brokered private placement (the "Non-Brokered Private Placement").
The Offering announced on May 31, 2007 contemplated:
The Offering is amended as follows, with the other terms of the Offering remaining unchanged:
NON-BROKERED PRIVATE PLACEMENT
The Non-Brokered Private Placement contemplates:
The Offering, as amended, and the Non-Brokered Private Placement are subject to regulatory approval and all securities issued will be subject to a mandatory four month hold period from the date of closing.
The Company will use the gross proceeds from the sale of the FT Shares for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)), with the Company using its best efforts to ensure that such Canadian Exploration Expenses qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's Baker Basin Uranium Project located in Nunavut, Canada. The Company expects to renounce such Canadian Exploration Expenses with an effective date of December 31, 2007. The net proceeds from sale of the Units will be used for general working capital purposes and development of the Company's property portfolio.
The Company plans a $3 million drilling program during 2007 with immediate follow-up drilling of two zones that yielded encouraging uranium assays from the seven holes drilled in late 2006. Diamond drilling will also be directed to two new uranium discoveries made last year by the Company's exploration crew. Exploration is in progress with crew and diamond drilling equipment now being mobilized to the project site.
The Baker Basin Uranium Project is located about 50 kilometres south of the town of Baker Lake in southern Nunavut. The project covers an area of 500,000 acres over an approximate 60 kilometre length of the southern boundary of the Baker Lake basin, where over 20 uranium prospects have been discovered. Baker Lake basin is one of four Canadian proterozoic basins recognized as attractive depositional environments for large uranium deposits.
"Wayne J. Roberts"
Wayne J. Roberts
For further information, contact:
Pacific Ridge Exploration Ltd.
John S. Brock
Tel: (604) 604.641.2759
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. Although Pacific Ridge believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Pacific Ridge does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.