Peregrine Diamonds Ltd. PGDIF

Is DDC inplay

[oiltar]

From: james flannigan	10/3/2016 7:48:39 AM
	of 13927
Nailed it down to RIO Who was the "inbound interest" in DDC as for an out right take over.A few months ago I was talking to a diamond expert and he suggested DDC might get sold.At first I thought that was not going to happen as DDC was rumored to be looking at targets to buy.But after the CEO of DDC saying we had "in bound interest" I hade to ask who was it and are they still interested.I came to a logical conclusion that it was very likely RIO who courted DDC and is now more than ever interested.I ruled out Debeers as it was trying to sell Snap and open GK.But in the case of RIO the company did a review a couple of yrs ago and decided to stay in the diamond mining business. As such being a partner in Diavik with DDC RIO knew and has already a working relationship with DDC.Then the fire broke out at Ekati.That event likely put and friendly offer off the table as DDC shareholders would not like a low bid for DDC due to the fire situation.In other words if the deal needed support by DDC management the share price would need to recover as to make a fair bid not look like it was presented when DDC was on its knees.But now RIO has shut down it Bunder mine construction and Argyle is very near it LOM end.So I would have to think RIO needs a M&A deal to build up its inventory if it intends to stay in diamond mining. The stock price of DDC is in recovery mode.This affords RIO to bid for a premium before DDC fully recovers to the TD target of $25.If not it allows DDC to do and M&A deal with a higher stock currency.In Feb DDC shareholder and CEO Patrick Evans said M&A was going to happen in Canadas diamond space.But we have not seen any yet.So I conclude DDC is still likely a target for DDC if DDC shares rebound to the $16 range. I think the plant fire may have only delayed a RIO bid but that may change before the end of 2016.IF DDC was in play before the fire it still might be.