June seems to be a key date for DDC and PGDDDC anounced that CEO Brendan Bell is leaving in june and DDC is looking for a new CEO.We now have seen a clear plan for an exploration program laid out for the summer of 2017 by PGD as they are in what now looks to be advanced talks with diamond producers.PGD is in no condition from a finacning option to go it alone on Chidliak as its share price is too depressed.While small investors can exit the stock the large holders of near 50% have what is nothing more than stranded capital.The Friedlands can only exit such a large position on an out right sale of PGD or a merger into a larger entity who has a liquid share float.
I question why Bell is stepping down in June as he was just brought in to turn DDC around by angry DDC shareholders.What changed in the board room?DDC is on record they are the "logical buyers" of a new exploration project.We also know Jim Gowans ex Debeers CEO was in charge when Debeers optioned Chidliak but was over ruled by Anglo.Jim Gowans took the Chair of DDC after the Debeers pull out of Chidliak.Partrick Evans CEO of MPVD backed the new board of DDC and made two public statements. 1 Chidliak was going to be a mine and 2 mergers of Canadian diamond companies were likely to happen in 2016.We did not see any mergers yet.But to get rid of Bell right at the same time PGD is in talks with diamond producers for a June start up of a deatailed exploration program forces me to ask is something brewing between DDC and PGD.
Both my self and John Kaiser have speculated that Eric Friedland might one day take the helm of CEO of DDC.PGD last month extened the compesation of its key management if control of PGD was to change.That attracted the ink of Will Percell to suggest a PGD take over might be in the works in his recent Street Wire.
Given PGDs depressed share price the marke suggests its not in any mood for more PGD paper and a sale of PGD is the best option for shareholders as Chidliak is needing a full blown exploration effort to take it to the world class level a task the PGD can not do on its own.By merging PGD into DDC for paper allow PGD shareholder to gain a full position on all of DDCs future production profile that is set to increase by leaps and bounds.
DDC went to great effort to inform its shareholders of future results and that gap up in DDCs paper jumped by 12% in one day giving DDC currency to do a deal for PGD.It also set the stage for PGD paper exchanged for DDC stock to advance as in house production rises and Chidliak opens the mine in 2021.DDC is in such a strong financial position it could fund Chidliak to full production with out the need to take on any debt someting both sets of shareholders would welcome.
So I now think we are very close to a deal for PGD.Bell is gone and that opens a position for Eric to be in control of his and Roberts invesment through DDC.PGDs management is well compensated paving the way for a deal.
And it just might mean JK was right all a long: