Peregrine Diamonds Ltd. PGDIF

Go it alone?

[oiltar]

The only way I see PGD going it alone is a 10 to 1 roll back. That puts the share float at  aound $35 million and a $2 SP. Then they could issue 8 million more sahares to fund the winter program.Assuming the market responds to added insitu value and by some strange fuke the markets now sees PGD as a real diamond mine in the pipline and raises the SP to say $3,then only 15 more million shares take it to full FS.This would result in only 58 million shares and allow for a full new issue of 150 million at $3 fully mine funded for 208 million shares out.

That would be far better than the SWY financing as it was much less capital cost and a much higher IRR at Chidliak to Renard.

When the mine opens we get a $1 billion market cap like MPV and SWY and a $6 share price.

That is a go it alone path PGD if no JV should do the roll back like TXG did.

[ekim]

I outlined in detail a go it alone plan. Basically bring in stakeholders to help finance the mine. Lighten the load. First was not a consolidation but to talk to people who want to give you money upfront as happy salespeople. long....pgd...ekim

[mill44]

Ekim, when I mean alone, I mean just them and whoever else wants to tag along. Like the last 2 rights offerings. That's what the market fears. A PP to the outside would be welcome, even if it leads to dilution. I think the market would like even if they did a PP with Eric and Robert. Anything that does not lead to the market being flooded with tons of cheap shares.

[cudjo]

don't think a PP or any financing is in the works for any winter program now, it is too late as ships have sailed, it would VERY irresponsible financially for them to fly resources in now.  They had a year to plan a winter program regardless of final PEA announcement, or is management SO incompetent they could not focus on more than one thing at a time, doubt it.  If this was going

[mill44]

They still need to decide about the company's future. A deal now, wait for better times or just go ahead are the only options I can think of.

[cudjo]

and as the song says, two out of three aint bad

[griefman]

Who are we to believe, or maybe a better word be, suggest who is right...Mike, who says, yes, they still have time and resources to start the winter program on schedule or Cudjo, who said in the past, no way and now, it would be irresponsible to do so? Im not on anyone's side as it doesn't really matter, we have no control on that aspect and frankly, my skin in the game has been reduced

[greex27]

Ekim has done his DD and I wouldn't hesitate to formulate a view based on past comments or information that can be found on his blog. Cudjo, IMHO has come a long way in his view of PGD, I don't think he's necessarily correct as it relates to the winter program but he has a tempered view as it relates to PGD's handling of past offerings and what that might mean for the winter

[griefman]

Cudjo knows his stuff and may not be as technical as Mike, but who here is. I respect him and totally get what his concerns are and he's kind of a liptmus test for all of us to look at the picture more closely. In fact, in some way, everyone here has their place and their rythum that together plays well like a dysfunctional family. We fight once in while, but we are all adults, I think, so

[mill44]

A rollback does not change anything. 1000 shares or 100.000 shares, if you have to fund the mine, your contribution will be based on the percentage you own, not the number of shares. The question is if the Friedlands want to do it. 50% of all the funds have to come from them and based on the last offering, that number will be most likely higher. Even if they want to do it, the next issue for them

[griefman]

Gee, got to agree with Mill about a roll back, not a sound finacial premise to achieve what Oiltar presents, IMO.  In fact many roll backs just result in an eroding of SP as a result.  Money is money,whether it's 100 pennies or a loonie, obviously still the same and maybe, maybe it might be a psychological boost, it will not automatically improve the optics of the situation.

[ekim]

A consolidation might be a great idea if you are looking at entering this play or re-entering this play. Lucky for the longs (the few of us out their)...both Robert and Eric are not looking at entering or re-entering this play. If a consolidation does erode the share price...it would also erode the 21 penny and 35 penny options...so the mgmt probably isn't a cheerleader either. LONG...PGD