July 9, 2009
Peregrine Diamonds Ltd. (“Peregrine”) announces that it has commenced
arbitration proceedings against Indicator Minerals Inc. (“Indicator”)
and Hunter Exploration Group (“Hunter”) regarding a dispute which has
arisen over a joint venture which covers a portion of the 33,100 hectare
Nanuq North property (“Nanuq North”) located in Nunavut, Canada. Under
the Nanuq North joint venture, Peregrine and Indicator each hold a 40
percent interest in 13,900 hectares of claims (“the Core Claims”).
Hunter holds a 20 percent interest in the Core Claims and Peregrine and
Indicator are required to sole-fund exploration expenditures on a 50/50
basis through to completion of a scoping study.
Indicator as operator of the Nanuq North joint venture has issued notice
to Peregrine that it intends to proceed with a 2009 exploration
programme consisting of drilling, till sampling and analytical work with
a budget of $2.34 million. Peregrine has not approved the exploration
programme and is contesting Indicator’s assertion that it has the right
to implement the programme and require Peregrine to contribute its 50
percent share of expenditures without Peregrine’s approval.
Peregrine has approved a portion of the 2009 exploration programme
proposed by Indicator consisting of till sampling and analytical work.
The drilling portion of the programme proposed by Indicator consists of
drilling the single kimberlite discovered to date at Nanuq North.
Peregrine believes that the drilling programme proposed is premature and
that the kimberlite should be drilled as part of a larger, future
drilling programme that would accomplish additional technical objectives
and be completed in a more efficient and cost-effective manner.
Under the arbitration, Peregrine is seeking a determination of
Indicator’s right to proceed unilaterally with the proposed 2009
programme, the validity of Indicator’s notice to Peregrine to contribute
its share of the programme expenditures and an order restraining
Indicator from acting on the notice and diluting Peregrine’s interest in
the Nanuq North joint venture.
For further information, please contact Eric Friedland, CEO, Brooke
Clements, President, or Peregrine Diamonds Investor Relations, at
604-408-8880 or at firstname.lastname@example.org
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, joint venture
participation, and future exploration and operating plans) are
forward-looking statements. 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. Factors that could cause actual results or
events to differ materially from current expectations include, among
other things, uncertainties relating to existing and future joint
venture interests, the availability and cost of funds, timing and
content of work programmes, results of exploration activities,
reliability of mineral property titles, and any changing budget
priorities. Any forward-looking statement speaks only as of the date on
which it is made.
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