🕐20.12.11 - 16:27 Uhr
PEREGRINE INCREASES OWNERSHIP IN CHIDLIAK DIAMOND PROJECT TO 100 PERCENT
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Re: Press Release - Tuesday, December 20, 2011
Peregrine Increases Ownership In Chidliak Diamond Project To 100
Percent
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Peregrine Diamonds Ltd.
("Peregrine" or "the Company") is pleased to
report that it has entered into a binding agreement with BHP Billiton
to purchase BHP Billitons 51 percent participating interest in the
8,580 square kilometre Chidliak diamond project ("Chidliak" or "the
Project"), Baffin Island, Nunavut, Canada.
The purchase gives
Peregrine 100 percent ownership of Chidliak, exposing its shareholders
to all the benefits from the diamond discoveries to date and the
Projects exploration potential.
Under the terms of the agreement,
Peregrine will pay a total of CAD$9,000,000 over a period of three
years, and grant BHP Billiton a two percent royalty on any future
mineral production from Chidliak.
Peregrine has the right to match any
offer by a third party to purchase any of the royalty, should BHP
Billiton decide to sell.
In addition, as part of the transaction,
Peregrine has acquired BHP Billitons Canadian regional diamond
exploration database and BHP Billiton has agreed to extinguish
Peregrines royalty obligations and BHP Billitons diamond marketing
rights on certain Canadian mineral properties in which Peregrine has an
interest.
Mr.
Eric Friedland, CEO of Peregrine, commented, "BHP Billitons
decision to review its diamonds business has presented Peregrine with
an excellent growth opportunity.
A 100 percent stake in Chidliak, one
of the worlds leading diamond exploration projects, at a time when
diamond supply shortfalls are on the horizon and world-wide demand for
diamonds continues to grow, offers us complete flexibility on how this
project will be developed in order to maximize shareholder value.
I
believe that BHP Billitons acceptance of a royalty speaks volumes
about Chidliaks potential to become a significant royalty-generating
diamond mine.
In addition, the acquisition of BHP Billitons Canadian
regional diamond exploration database could significantly increase our
chances of discovering the next new Canadian diamond district.
All of
us at Peregrine would like to thank BHP Billiton for their substantial
investment in Chidliak and for their technical and operational input
and faith in Peregrine as operator.
We view Chidliak as a shining
example of how a major and junior company can work together to add real
value to a mineral project.
We now look forward to advancing Chidliak
to become Baffin Islands first diamond mine."
To view a copy of the press release issued by BHP Billiton today please
select the following link: www.pdiam.com/i/pdf/BHPBillitonNewsRelease.
TERMS OF THE PURCHASE AGREEMENT
.100 Percent Ownership.
BHP Billiton will transfer its entire 51 percent
participating interest in Chidliak to Peregrine, giving the Company 100
percent ownership of the Project complete with 100 percent of the diamond
marketing rights.
.Closing.
Peregrine and BHP Billiton agree to close the transaction on or
before January 31, 2012.
.Payments.
CAD$9 million dollars as follows: $1.5 million at closing and
$2.5 million on each of January 31, 2013, January 31, 2014 and January
31, 2015.
.Royalty.
Peregrine will grant BHP Billiton a two percent royalty on
mineral production from Chidliak.
Peregrine has the right to match any
offer by a third party to purchase any of the royalty, should BHP Billiton
decide to sell.
.Regional Diamond Exploration Database.
Peregrine acquires exploration
data and archived heavy mineral concentrates for sediment samples that
were collected by BHP Billiton during regional diamond exploration
programs in Canada.
.Termination of Royalties and Diamond Marketing Rights.
The following
Peregrine obligations to BHP Billiton will be terminated:
o2 percent royalty and certain diamond marketing rights on 62% of
claims on the Nanuq property, Nunavut
o2 percent royalty on the TW property, NWT
o0.7 percent royalty on certain portions of the WO and Lac de Gra
s East properties, NWT
o1 percent royalty and certain diamond marketing rights on the
Pellatt Lake property, NWT
2012 CHIDLIAK PROGRAM
As a result of Peregrines significant strategic move to increase its
interest in Chidliak to 100 percent, the Company will now undertake a
comprehensive analysis of the 2012 program to determine how to most
efficiently advance the Project considering the best interests of
Peregrine shareholders.
At this time, continuing preparations for the
2012 bulk sampling program will be put on hold until a final decision
on the path forward is made in January, 2012.
For further information, please contact Mr.
Eric Friedland, CEO, Mr.
Brooke Clements, President, Mr.
Mike Westerlund, Vice President,
Investor Relations and Corporate Communications or Peregrine Diamonds
Investor Relations, at 604-408-8880 or at .
Forward-Looking Statements: This news release contains forward-looking
statements.
All statements, other than statements of historical fact,
that address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
(including, without limitation, statements relating to the proposed
exploration programme, funding availability, anticipated exploration
results, resource estimates, future exploration and operating plans
and completion of the acquisition of BHP Billitons Chidliak interest)
are forward-looking statements.
These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to the Company.
Forward-looking
statements are subject to a number of risks and uncertainties that may
cause the actual results of the Company to differ materially from those
discussed in the forward-looking statements and, even if such actual
results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects
on, the Company.
Factors that could cause actual results or events to
differ materially from current expectations include, among other
things, uncertainties relating to the availability and cost of funds,
timing and content of work programmes, results of exploration
activities, interpretation of drilling results and other geological
data, world diamond markets, future diamond prices, reliability of
mineral property titles, changes to regulations affecting the Companys
activities, delays in obtaining or failure to obtain required project
approvals, operational and infrastructure risks, other risks involved
in the diamond exploration business and completion of the acquisition
of BHP Billitons Chidliak interest.
Any forward-looking statement
speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any
intent or obligation to update any forward-looking statement, whether
as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements
are not guarantees of future performance and accordingly undue reliance
should not be put on such statements due to their inherent uncertainty.
Associated File:
http://www.pdiam.com/i/pdf/11-22-Press-Release-20Dec 11-Peregrine-acquires-Chidl.pdf
30 KB in size, approx.
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Copyright (c) 2011 PEREGRINE DIAMONDS LTD.
(PDL) All rights reserved.
For more information visit our website at http://www.pdiam.com/ or send
mailto:
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