Peregrine Diamonds Ltd. PGDIF

Upcoming Event Prediction

[shneps]

I am throwing two upcoming event predictions out there for conversation. 1. Outright paper buyout of Peregrine by Dominion Diamond Mines. 2. (My pick) JV between Peregrine and DDM. Paper and money. My thought process behind this is that DDM and PGD will partner together whereby DDM buys in and provides funding through to feasibility on Chidliak. This gets Chidliak to a bankable feasibility study. Mine funding later but having a significant partner removes risk and improves backing of required funds to build. DO27 will become available for future Diavik mill feed. Possibly concentrate ore (partially) at DO27, stockpile, and then transported via winter road to Diavik. This will provide for better mine feed of weaker future pipes on Diavik property. This may be the reason for deferring the expansion of Jay pipe (at the moment) to provide the required cash funding necessary to get Chidliak to feasibility. PGD's Lac de Gras region still has more exploration potential including DO18 and several more pipes, dykes and sheets. Lots of possibilities out there but scenario #2 seems to be the more likely scenario. It would be interesting to see if Rio Tinto gets involved in the scenario as well. A three way JV, paper, money and a diamond district. Nice consolidation of the Canadian diamonds industry. DeBeers will be looking to sell a 7,000tpd mill next year if anybody is interested. Just thoughts. Cheers

[dabard51]

Sneps, interesting thought.  How much C$ do you think DDM (or any partner) needs to bring to the table to make it a go?  C$1 Bn?

[Kidlapik]

DDC got bought out by Washington Companies taking it private. So I do not believe a paper deal can even be a consideration anymore from that company or I may be wrong? A JV deal for cash considerations could still be a possibility and personally I think it fits the Friedlands MO. Get a company to buy out half their position in a way that gets them to an operational mine covering their half of

[ekim]

Yeah, if you meant cash for all existing paper..then yeah...that is possible with DDM. But a paper for paper deal is not possible seeing as DDM is a private company...unless they plan to re-ipo DDM as a public entity. I'm with Kid on the De Beers thing. If they can get an acceptable deal for the friedlands and it is at the hands of De Beers....it might be the way to go. The washington group