** Shares of Peregrine Gold PGD.AX rise 10.3% to A$0.16

** Stock hits highest level since January 7

** The gold and lithium explorer executes agreement with prominent prospector and major shareholder Mark Creasy over Peninsula rospect

** Co says the agreement permits the potential extraction of gold material in the Peninsula prospect

** Net proceeds recovered to be split in favour of Peregrine on a 60/40 basis, adds co

** About 264,200 shares change hands by 0202 GMT, 3.7 times the 30-day average volume of shares

** Stock up 3.6% this year as of last close

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com;))