Karora Resources Inc V.KRR

found these 2 posting on Peregrine Diamonds

[rhaqq]

Peregrine Diamonds Ltd.: Convertible Debenture Converted VANCOUVER, BRITISH COLUMBIA, Aug 18, 2006 (CCNMatthews via COMTEX News Network) -- Peregrine Diamonds Ltd. ("Peregrine") (TSX VENTURE:PGD) today announced that BHP Billiton Diamonds Inc. has elected to convert a CDN $340,000 convertible debenture maturing August 1, 2008 it holds with Peregrine. The conversion resulted in the issuance of 40,476 common shares of Peregrine at a deemed value of CDN $8.40/share. The debenture would have automatically converted at maturity at a deemed value of CDN $9.40/share. Peregrine is a well funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The company is taking the plus 9 hectare DO-27 diamondiferous kimberlite into pre-feasibility, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The company trades on the TSX-V Exchange under the symbol "PGD". Peregrine Diamonds Ltd. Eric Friedland, President and CEO Alan Carter, COO SOURCE: Peregrine Diamonds Ltd. Peregrine Diamonds Ltd. Roberta Voyer Corporate Administrator [phone] [phone] (FAX) www.peregrinediamonds.com Copyright (C) 2006 CCNMatthews. All rights reserved. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Interesting. As I read it, BHP (the people processing the current kimberlite sampling) could have kept this on their books valued at 340,000 until 2008. Instead they have opted to convert to 40,476 common shares totaling 111,309 at a closing price of 2.75. The question then, is why is BHP taking a 230,000 writedown at this time (from an accounting perspective). One reason occurs to me is that they do not expect the stock to stay under the agreed on price of 9.40 for very much longer. Once it passes this level, it will be impossible to negotiate a discount. Another, is that if it passes 9.40 level soon, instead of the write down, it will add to the bottom line. Now BHP is a very big company but 230,000 here 230,000 there, - hey - it can add up:) Taken by itself not necessarily a big indicator, but add in the recent insider buying, the rush to get 3.00 options lined up and registered, and the fact that we are (per previous announcements) supposed to have results back within 2 weeks, make 2.75 look rather attractive. Looks like PGD is rewarding the key players, and setting up for some solidly good news. All speculation, but I did increase my holdings this month - enough to feel great if it triples but not enough that I will be depressed if it gets cut in half - could be an interesting couple of weeks!