After a harrowing October in which almost-joint venture partner De Beers (
OTO:AAUKF,
Stock Forum) decided it would
not exercise its right to enter into an earn-in agreement with Peregrine Diamonds (
TSX:T.PGD,
Stock Forum) on the Chidliak diamond project in Nunavut, the miner appears to be fighting back with shares in the company climbing rapidly Monday from $0.38 to as high as $0.45, settling in at an 18% rise.
No company-issued news supported the climb, which occurred on moderate volume.
Shares in the company had dropped from $0.65 down to $0.35 on the earlier news of De Beers' departure.
According to
WorldOfMining.com, key to the company fortunes going forward are results of a bulk sample, due out in Q1 2014 or earlier, which the organization hopes will confirm earlier small samples from Chidliak’s CH-6 kimberlite, which contained
rich, world-class grades, are representative of the greater project.
There has been no public explanation as to why De Beers abandoned their deal, though
BHP Billiton had done similarly earlier in the life of the project.
Peregrine, a $62 market cap explorer, now holds 100% of the play and is considered in some quarters to be a potential takeover target.
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