Peregrine Diamonds Ltd. PGDIF

1.7 million left

[cudjo]

"At May 10, 2018, the Company had working capital of approximately $1.7 million and cash resources of approximately $2.8 million. The Company does not currently have sufficient financial resources to proceed with currently planned exploration and development initiatives. Further exploration and development of the Company’s mineral properties in the near and long term will depend on the Company’s ability to obtain additional funding through equity or debt financing or through the joint venture of projects. The Company’s contractual obligations for the next five years are disclosed in Note 15 to the condensed consolidated interim financial statements for the six months ended March 31, 2018. Other than those property payments listed in Note 15 to the condensed consolidated interim financial statements for the six months ended March 31, 2018, no property payments are required to maintain the Chidliak or WO properties which are the Company’s material properties.

The Company does not currently earn any revenue from its planned operations. Although the Company has in the past been successful in obtaining financing through the sale of equity securities, there can be no assurance that funding will be available in future periods or on terms favourable to the Company. Current global economic uncertainty and negative equity and commodity market sentiments have resulted in limited financing options for the Company. If this situation continues specifically for diamonds for an extended period of time, it could negatively affect the Company’s ability to obtain equity financing or external debt financing in the future. Failure to obtain future additional financing would result in the delay or indefinite postponement of further exploration or development of the Company’s properties and possibly result in loss of properties. For further discussion on management of the Company’s capital risk, see Note 16 to the condensed consolidated interim financial statements for the six months ended March 31, 2018."

Could be wrong, but do not recall them calling out the diamond industry in the previous MD&A's, if not, and I whave to check, this could be a signal that talks, which are repeated from older MD&A's have been attempted etc., could mean they are not going anywhere and the only way forward is more rights. Burn rate is around 600K a quarter now, higher expenses, salaries etc. Need some big shoes shortly after the PEA or sub dime rights coming at us again, good luck.