My open letter sent to DDC yesterdayIf Debeers buys all of PGD or The Friedlands take PGD private we long suffering shareholders will be locked out of Chidliak for good.Debeers is not a public company so a take over of PGD by Debeers would not give full value of the asset to the public shareholders of PGD.But if DDC were to take over PGD with its depressed paper in exchange for PGD paper we could ride the recovery up in DDC shares and keep public interest in Chidlliak and lay to rest funding questions that has crushed the PGD share price.I would suggest all PGD shareholders contact DDC and offer support for a take over of PGD.Its in our best interest to bring in a mine builder at this stage in time before Debeers shows it face again.The hostile take over of my COS shares due to the depressed price is worries me that PGD trades too low and a some one will steal this asset.The shares of PGD are worth many multiples of its current price.We must fight to get full value as no one is going to do it for us.
I mailed this to DDC yesterday
Attention DDC CEO
I would like to draw the attention of DDC to the Chidliak diamond discovery on Baffin Island.Peregrine Diamonds has discovered what I think is one of the highest quality diamond discoveries in 20 yrs in Canada.The diamonds at Chidliak have a 75% to 85% white diamond population in one of the most course diamond kimberlites ever see in Canadian diamond exploration data.
This project will have the highest IRR of any current operating mine in Canada by a factor of 2.Some experts suggest a 77% IRR.There is in my view a chance for DDC to buy up the asset or move very quickly to JV this discovery into the next most important diamond district in 20 yrs.
As a DDC shareholder our shares are under distress as investors are questioning the economics of the far lower quality Jay pipe.The shares of PGD are under distress as shareholders of PGD were hit when BHP and Debeers walked away from Chidliak.It is very clear by the data posted by PGD after the JV options rejected by BHP and Debeers that it was a major blunder by those major diamond miners to drop the option on this high value high grade deposit.
I have concluded that the Chidliak diamonds are Victor like quality in 12 time the Victor grade.These diamonds were emplaced by the coldest mantle event ever see world wide.As such the quality is in the worlds top bracket.
It is my thinking DDC can take advantage of the majors mistakes and get a foot onto Chidliak before Debeers makes a take over bid likely in 2016 for all the outstading PGD stock.I would welcome DDC paper in a trasnaction that moves this project to production.
DDC needs high quality diamonds in its stable of producing mines.A interest in Childliak would be viewd as a shrewed move to lock up the supply of high quality diamonds before Debeers does it.
I have spoke directly to Eric Friedland and he is open to any interest in Chidliak.
The shares of DDC would rally on such a monve by DDC.
I ask DDC to relpy
Thanks
James Flannigan
Flannigan Properties Ltd.