Peregrine Diamonds Ltd. PGDIF

No Shopping Around for Another Bid

[Oregonduck]

PGD can only consider "unsolicited" bid with a breakup fee $5 million should DeBeers decide not to match any higher offer. Presumably, soaking up shares at the open market at $0.24 by DeBeers will ensure they get the two-thirds super majority vote to approve this takeover... This deal only makes sense for DeBeers who had once been a partner with PGD until they dumped the project years ago. DeBeers will be closing their $1 billion cost Victor Mine in 2019, and major equipment and building materials can be moved to Chidliak which would save them a huge amount of money cutting down the estimated $500 million in plant buildup.

[shneps]

At the moment the demolition contract for Victor is not set that way. The FRP is basically sell what you can, give away what you can, very little cost effective recyclable materials. Most will be offered to Attawapiskat (modular buildings, etc.). The rest gets buried. Nobody said northern mining was eco friendly when it come to closure. Materials have to go by ice road back to Moosonee, loaded on

[Oregonduck]

James Kirby who manages Victor Mine said to the Financial Post in 2017,"...Offers to buy the site [Victor Mine] could also be considered, KIrby said, but the company currently plans to dismantle and remove operations during shut-down."

[schocor]

Moving rusty, dusty old equipment from Victor to tidewater to take to Childiak seems site silly in most instances I can imagine. Shipping and dismantling costs likely outweigh any benefits. DeBeers left the vast majority of the equipment at Snap when they closed that as well - and nobody bought it for the reason I just explained.

[shneps]

Moving to tidewater has never been a cost effective option for Victor. The shores are shallow and long slopes making barge access, due to shallow draft, impractical for shipping. I think you will find DeBeer's developing a lean and mobile "persay" mill site. If by chance there is no more than ten years of value at a site you merely pack up and go. The large kimberlites are becoming

[mill44]

The sale sign has been up for about 3 years now, so whoever is interested in diamonds knows all what there is to know about PGD. Going out to advertize it now would not make much sense. The only hope is one of the entities they had across the table already. I know, it is slim, but we have dreamt big before, why stop now. What's funny is that people would have called me all kinds of interesting

[shneps]

Always respected your comments Mill so it certainly would not have been me. Always hoped for 40c.

[mill44]

Thx, Shneps. People don't always have to agree to respect the other opinion. Unfortunately, most people go in counting the money they will make, never consider that they could lose on the trade. Of course, they cannot even entertain the idea that something could go wrong then. I never really got that. In my mind, once in you made up your mind, the opposite side would be the only side to listen