January 22, 2016
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report that it has settled its litigation with BHP Billiton Canada Inc (“BHPB”) relating to the Chidliak Royalty. The dispute arose in May, 2015 in regards to BHPB’s transfer of the Chidliak Royalty to South32 Limited.
By a royalty agreement, dated February 2, 2012, (“Royalty Agreement”) Peregrine had granted BHPB a 2% Gross Over Riding Royalty on future mineral production, including diamond production, from its 100% owned Chidliak project. In consideration of Peregrine terminating its legal action against BHPB and a cash payment of $125,000, BHPB has agreed to terminate the Royalty Agreement and thereby cancel the Chidliak Royalty.
Mr. Eric Friedland, Peregrine’s Executive Chairman said “The termination of the Chidliak Royalty is a very good outcome for Peregrine’s shareholders and the Chidliak project. The project is now completely unencumbered, and the removal of this significant charge will have a substantial positive impact on any future diamond production at Chidliak. On behalf of the board and shareholders, I would like to take this opportunity to thank Tom Peregoodoff, Peregrine’s President and CEO, for his diligence in determining the issues related to the Chidliak Royalty, managing the subsequent litigation and reaching a successful outcome.”
PEREGRINE DIAMONDS RIGHTS OFFERING
Peregrine Diamonds wishes to remind right holders of the upcoming expiry of the Company’s rights that were issued in accordance with the offering announced on November 19, 2015. Rights expire at 2 p.m. Pacific Standard Time (5 p.m. Eastern Standard Time) on January 26, 2016. For further information regarding exercising of rights please contact your financial advisor or broker.
ABOUT PEREGRINE DIAMONDS
Peregrine Diamonds is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.
The Company’s core asset is its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut. An Inferred Mineral Resource of 8.57 million carats in 3.32 million tonnes of kimberlite at a grade of 2.58 carats per tonne has been defined for a portion of the CH-6 kimberlite. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat. A Target for Further Exploration (“TFFE”) of 3.72 to 6.01 million tonnes to a depth of 290 metres has been defined at the CH-7 kimberlite, where a 2015 bulk sample returned a grade of 0.88 carats per tonne. A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has also been defined at the CH-44 kimberlite pipe. The TFFEs identified above are conceptual in nature and are not Mineral Resources. It is uncertain whether further exploration will result in any of these tonnages being delineated as Mineral Resources.
In addition, Peregrine now controls eight prospective diamond prospecting licenses in Botswana that cover 574,600 hectares. The Company is actively exploration these licences.
Peregrine Exploration, a wholly owned subsidiary of Peregrine Diamonds holds the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth. Peregrine Exploration is also active in developing new diamond exploration plays in North America.
For information on see the technical reports, “2015 Technical Report for the Chidliak Project, ” dated February 23, 2015, and “Peregrine Diamonds Ltd. Lac de Gras Project Northwest Territories, Canada ” dated July 15, 2014, both of which are available on SEDAR and the Company’s website.
For further information, please visit www.pdiam.com or contact Mr. Eric Friedland, Executive Chairman, Mr. Tom Peregoodoff, President and CEO, Dr. Herman Grütter, Vice President, Technical Services, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at email@example.com.
This news release contains forward-looking statements within the meaning of C