Corporate
Corporate Overview
Peregrine Metals is a publicly-traded copper exploration and development company which is listed on the Toronto Stock Exchange (TSX:PGM). Peregrine Metals has 100% interest in the large Altar porphyry copper-gold deposit ("Altar" or "the Project") located in San Juan Province, a mining-friendly jurisdiction of Argentina. A total of 149 holes have been drilled at Altar since 2003 for 58,642 metres.
On July 11, 2011, Stillwater Mining Company and Peregrine Metals Ltd. announced that they have entered into a definitive agreement pursuant to which Stillwater, by way of a Canadian plan of arrangement, will acquire all of the outstanding shares of Peregrine. Under the terms of the Agreement, Stillwater will exchange 0.08136 shares of Stillwater common stock and US$1.35 in cash for each common share of Peregrine. Based on the closing share price of Stillwater common stock as of July 8, 2011, which was US$23.72, the Agreement places a value on Peregrine common shares of US$3.28 (CDN$3.16) per share. This represents a total purchase price of US$487.1 million, and assumes the exercise of all outstanding Peregrine options and warrants resulting in a CDN$34.4 million (US$35.7 million) contribution to treasury, and implying a net equity value of US$451.4 million. The acquisition was completed on October 4, 2011, and Stillwater and Peregrine shareholders own approximately 89.5% and 10.5%, respectively, of the combined company on a fully diluted basis.
An independent NI-43-101 updated Resource Estimate for Altar has been completed utilizing information from all the drilling to date on the Project. The Measured and Indicated Resource is 802 million tonnes grading 0.44% copper equivalent ("CuEq") containing 7.41 billion pounds of copper and 1.53 million ounces of gold, both at a 0.3% cut-off grade. The Inferred Resource is 465.6 million tonnes grading 0.44% CuEq, including 4.32 billion pounds of copper and 880,000 ounces of gold, both at a 0.3% CuEq cut-off grade.
Note. Mineral Resources that are not mineral reserves do not yet have demonstrated economic viability.
*The copper equivalent ("CuEq") calculation is based on a copper price of USD $2.80/lb and gold price of USD $850/oz. It also includes a factor to compensate for an assumed gold recovery of 65% and a 90% recovery for copper.
The resource is open to expansion laterally in two directions and to depth and is expected to increase with future continued drilling. For example, the deepest hole drilled at Altar, ALD-43, grades 0.70% copper over 800 metres and the final 400 metres (602 to 1,010 metres of depth) grades 0.83% copper and ends in mineralization.
The above global resource includes a higher-grade component of copper mineralization in the upper regions of the deposit.
The immediate focus at Altar is completion of a Preliminary Economic Assessment on a combined concentrator and leach operation. The PEA is currently expected to be completed during the third quarter of 2011.
To view the latest exploration update and assay results reported on October 04, 2010 and selected previous results, click here
On July 11, 2011, Stillwater Mining Company and Peregrine Metals Ltd. announced that they have entered into a definitive agreement pursuant to which Stillwater, by way of a Canadian plan of arrangement, will acquire all of the outstanding shares of Peregrine. Under the terms of the Agreement, Stillwater will exchange 0.08136 shares of Stillwater common stock and US$1.35 in cash for each common share of Peregrine. Based on the closing share price of Stillwater common stock as of July 8, 2011, which was US$23.72, the Agreement places a value on Peregrine common shares of US$3.28 (CDN$3.16) per share. This represents a total purchase price of US$487.1 million, and assumes the exercise of all outstanding Peregrine options and warrants resulting in a CDN$34.4 million (US$35.7 million) contribution to treasury, and implying a net equity value of US$451.4 million. The acquisition was completed on October 4, 2011, and Stillwater and Peregrine shareholders own approximately 89.5% and 10.5%, respectively, of the combined company on a fully diluted basis.
An independent NI-43-101 updated Resource Estimate for Altar has been completed utilizing information from all the drilling to date on the Project. The Measured and Indicated Resource is 802 million tonnes grading 0.44% copper equivalent ("CuEq") containing 7.41 billion pounds of copper and 1.53 million ounces of gold, both at a 0.3% cut-off grade. The Inferred Resource is 465.6 million tonnes grading 0.44% CuEq, including 4.32 billion pounds of copper and 880,000 ounces of gold, both at a 0.3% CuEq cut-off grade.
| Copper Cut-off Grade (% CuEq)* |
Quantity Tonnes (Million) |
Grade | Cu Equivalent Grade (% CuEq)* |
Contained Metal | ||
|---|---|---|---|---|---|---|
| Copper % |
Gold (g/t) |
Copper (Billion lbs) |
Gold (Million oz) |
|||
| MEASURED RESOURCE | ||||||
| 0.2 | 669 | 0.38 | .057 | 0.40 | 5.62 | 1.22 |
| 0.3 | 491 | 0.43 | .061 | 0.45 | 4.69 | 0.96 |
| 0.4 | 278 | 0.51 | .070 | 0.53 | 3.12 | 0.62 |
| INDICATED RESOURCE | ||||||
| 0.2 | 541 | 0.33 | 0.050 | 0.34 | 3.92 | 0.87 |
| 0.3 | 311 | 0.40 | 0.057 | 0.41 | 2.72 | 0.57 |
| 0.4 | 137 | 0.49 | 0.061 | 0.51 | 1.47 | 0.27 |
| MEASURED + INDICATED RESOURCE | ||||||
| 0.2 | 1,210 | 0.36 | 0.054 | 0.37 | 9.54 | 2.09 |
| 0.3 | 802 | 0.42 | 0.059 | 0.44 | 7.41 | 1.53 |
| 0.4 | 414 | 0.50 | 0.067 | 0.52 | 4.59 | 0.89 |
| INFERRED RESOURCE | ||||||
| 0.2 | 906 | 0.33 | 0.053 | 0.34 | 6.53 | 1.56 |
| 0.3 | 465 | 0.42 | 0.058 | 0.44 | 4.32 | 0.88 |
| 0.4 | 252 | 0.50 | 0.054 | 0.52 | 2.80 | 0.44 |
The resource is open to expansion laterally in two directions and to depth and is expected to increase with future continued drilling. For example, the deepest hole drilled at Altar, ALD-43, grades 0.70% copper over 800 metres and the final 400 metres (602 to 1,010 metres of depth) grades 0.83% copper and ends in mineralization.
The above global resource includes a higher-grade component of copper mineralization in the upper regions of the deposit.
The immediate focus at Altar is completion of a Preliminary Economic Assessment on a combined concentrator and leach operation. The PEA is currently expected to be completed during the third quarter of 2011.
To view the latest exploration update and assay results reported on October 04, 2010 and selected previous results, click here
