RE:RE:RE:Botswana
original says APRIL 15, see very bottom, from stockwatch
Peregrine to acquire Diamexstrat Botswana 2015-03-30 08:37 ET - News Release Mr. Tom Peregoodoff reports PEREGRINE DIAMONDS ANNOUNCES ACQUISITION OF BOTSWANA DIAMOND EXPLORATION COMPANY Peregrine Diamonds Ltd. has entered into an agreement to acquire all of the shares of Diamexstrat Botswana (Pty.) Ltd., a privately held Botswana-registered diamond exploration and development company, from Diamond Exploration Strategies Ltd., a United Kingdom-registered private company. DES Botswana's primary assets are eight highly prospective diamond prospecting licences, covering 5,746 square kilometres in Botswana. Tom Peregoodoff, president and chief executive officer, commented: "This transaction is a significant milestone in the strategic development of the company. With this single transaction, we have become a significant diamond exploration player in Botswana. The principals of DES Botswana have over 60 years of combined diamond exploration experience in the country, most of that time with the De Beers Group. Using their extensive experience, they have compiled a countywide data set that is unparalleled in its scope and depth. They have assembled what we believe is the most prospective land package for new diamond discoveries in Botswana. This is one of the most compelling diamond exploration opportunities that I have seen in many years. Exploration work is ongoing, and we expect to be drilling kimberlite targets in 2015." Eric Friedland, executive chairman, said: "This transaction immediately gives Peregrine access to some of the world's most prospective diamond hunting ground. Botswana is the largest producer of diamonds in the world by value. It is [a] true Tier 1 diamond mine country, as shown by such world-class diamond mines as Orapa and Jwaneng. We believe there is tremendous diamond discovery potential in Botswana, and the unique combination of the DES team with the Peregrine team gives us a real competitive advantage." The purchase agreement The purchase agreement between Peregrine and DES U.K. transfers ownership of DES Botswana and all of its assets to Peregrine in consideration for the grant by Peregrine of a 1-per-cent gross overriding royalty to DES U.K. on all precious stone mineral interests held at the time of closing and those that may be acquired in specific target areas. In addition, Peregrine will assume a $450,000 loan that is currently owed by DES Botswana to DES U.K. and which was originally advanced by Peregrine. The agreement allows for Peregrine to buy out the royalty at various milestones as follows: For $2-million (U.S.) if within 60 days of the discovery of a diamondiferous kimberlite as defined by confirmation of the presence of microdiamonds or recovery of macrodiamonds in drill core/percussion chips; For $5-million (U.S.) if within 60 days of delivery of prefeasibility; For $7.5-million (U.S.) if within 60 days of a positive construction decision. In the event that Peregrine chooses to not pursue exploration on any of the prospecting licences, title for those licences shall revert to DES U.K., and Peregrine shall be granted a 1-per-cent gross overriding royalty on those properties with the same buyout provisions as above. As part of the transaction, DES U.K. will enter into a services agreement with Peregrine under which DES U.K. will provide Botswana-based operational management of all Peregrine-defined work programs. The transaction is expected to close April 15, 2015.