New Owner - Chidliak
De Beers Canada is now the new owner of Chidliak by way of purchasing and is now a 100% owned subsidiary - Peregrine Diamonds.
Here is a link to the official news release -- De Beers 2018 09 13
I have started a new blog to continue my thirst for conquering and sharing diamond knowledge
Here is the new link --> Ekim Diamonds
Note: Several links/images on this blog no longer work as the original peregrine diamonds website is being wound down and this blog will be wound down as well.
If you have any legacy questions on Chidliak, please email direct to stockhouseekim@gmail.com
Thursday, September 13, 2018
Friday, August 31, 2018
Forward Looking
Forward Looking Statements
The vote is in and PGD shareholders have voted overwhelmingly in favor of the 'arrangement'.
Is the deal done? Does De Beers own Peregrine Diamonds and via that, own Chidliak?
Not yet? Maybe? . The courts still need to approve it on Sept 10th and the estimated closing time is Sept 12th.
What about before that? What other outcomes are there?
The answer these questions, one must and should carefully and in fine detail, parse through the forward looking statements that came associated with the August 31st voting news release from Peregrine Diamonds.
Here are the forward looking statements (broken up in pseudo parts):
This news release includes forward-looking statements and information (collectively, the “forward-looking statements”) including, but not limited to:
forward-looking statements pertaining to the purchase by De Beers of all the issued and outstanding common shares of Peregrine;
the anticipated timing for closing of the transaction;
the satisfaction of closing conditions including, without limitation
(i) certain regulatory approvals;
(ii) necessary court approval of the Arrangement,
(iii) certain termination rights available to the parties under the arrangement agreement between them in respect of the Arrangement; and
(iv) other closing conditions, including, without limitation,
the operation and performance of the Peregrine business in the ordinary course until closing of the transaction, and
compliance by Peregrine with various covenants contained in the arrangement agreement, all of which are subject to risks, uncertainties and assumptions.
As a consequence, actual results in the future may differ materially from any expectation, conclusion, forecast or projection in such forward‑looking statements. Therefore, forward‑looking statements should be considered carefully and undue reliance should not be placed on them.
All forward‑looking statements are made pursuant to the safe harbour provisions of applicable Canadian securities legislation.
Forward‑looking statements are subject to risks, uncertainties and assumptions including, but not limited to:
failure to, in a timely manner, or at all, obtain the necessary regulatory and court approvals for the transaction or any transaction ancillary thereto;
failure of the parties to otherwise satisfy the conditions to complete the transaction;
significant transaction costs or unknown liabilities;
the risk of litigation that would prevent or hinder the completion of the transaction;
and other customary risks associated with transactions of this nature.
In addition, if the transaction is not completed, and Peregrine continues as an independent entity, there are risks that the dedication of substantial resources of Peregrine to the completion of the transaction could have an adverse impact on Peregrine’s business and strategic relationships, operating results and business generally. As a consequence, actual results in the future may differ materially from any forward-looking statement, forecast or projection, whether expressed or implied. Therefore, forward‑looking statements should be considered carefully and undue reliance should not be placed on them.
Forward‑looking statements in this news release reflect management’s expectations as of the date hereof and are subject to change thereafter.
The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and those matters identified in the “Risks Factors” section and elsewhere in the Company’s most recent annual MD&A and the management proxy circular that were previously filed in respect of this transaction, which are available on the Company’s website at www.pdiam.com and on SEDAR at www.sedar.com.
The vote is in and PGD shareholders have voted overwhelmingly in favor of the 'arrangement'.
Is the deal done? Does De Beers own Peregrine Diamonds and via that, own Chidliak?
Not yet? Maybe? . The courts still need to approve it on Sept 10th and the estimated closing time is Sept 12th.
What about before that? What other outcomes are there?
The answer these questions, one must and should carefully and in fine detail, parse through the forward looking statements that came associated with the August 31st voting news release from Peregrine Diamonds.
Here are the forward looking statements (broken up in pseudo parts):
This news release includes forward-looking statements and information (collectively, the “forward-looking statements”) including, but not limited to:
forward-looking statements pertaining to the purchase by De Beers of all the issued and outstanding common shares of Peregrine;
the anticipated timing for closing of the transaction;
the satisfaction of closing conditions including, without limitation
(i) certain regulatory approvals;
(ii) necessary court approval of the Arrangement,
(iii) certain termination rights available to the parties under the arrangement agreement between them in respect of the Arrangement; and
(iv) other closing conditions, including, without limitation,
the operation and performance of the Peregrine business in the ordinary course until closing of the transaction, and
compliance by Peregrine with various covenants contained in the arrangement agreement, all of which are subject to risks, uncertainties and assumptions.
As a consequence, actual results in the future may differ materially from any expectation, conclusion, forecast or projection in such forward‑looking statements. Therefore, forward‑looking statements should be considered carefully and undue reliance should not be placed on them.
All forward‑looking statements are made pursuant to the safe harbour provisions of applicable Canadian securities legislation.
Forward‑looking statements are subject to risks, uncertainties and assumptions including, but not limited to:
failure to, in a timely manner, or at all, obtain the necessary regulatory and court approvals for the transaction or any transaction ancillary thereto;
failure of the parties to otherwise satisfy the conditions to complete the transaction;
significant transaction costs or unknown liabilities;
the risk of litigation that would prevent or hinder the completion of the transaction;
and other customary risks associated with transactions of this nature.
In addition, if the transaction is not completed, and Peregrine continues as an independent entity, there are risks that the dedication of substantial resources of Peregrine to the completion of the transaction could have an adverse impact on Peregrine’s business and strategic relationships, operating results and business generally. As a consequence, actual results in the future may differ materially from any forward-looking statement, forecast or projection, whether expressed or implied. Therefore, forward‑looking statements should be considered carefully and undue reliance should not be placed on them.
Forward‑looking statements in this news release reflect management’s expectations as of the date hereof and are subject to change thereafter.
The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and those matters identified in the “Risks Factors” section and elsewhere in the Company’s most recent annual MD&A and the management proxy circular that were previously filed in respect of this transaction, which are available on the Company’s website at www.pdiam.com and on SEDAR at www.sedar.com.
Thursday, July 19, 2018
Bid for Peregrine Diamonds
De Beers Canada has launched a bid for Peregrine Diamonds.
More information and up to date information can be obtained on this page -- Bid for PGD
More information and up to date information can be obtained on this page -- Bid for PGD
Friday, June 1, 2018
Capital Event
On the eve of a Capital Event.
Peregrine Diamonds recently released the findings of an updated PEA study.
Link to News Release -- 2018-05-23
The metrics were very robust at CAD$1069 million pre-tax NPV at 7.5% discount.
This includes a pre-production capital investment of CAD$455 million or CAD$400 million if one excludes the contingency.
This is not only a significant increase from the original PEA, but still leaves a lot of value in the ground. All material below 300 mbs (metres below surface) at CH-6 was excluded from the mine design. Material from CH-20 kimberlite was included in the CH-6 pit outline, but was included only as waste material. CH-7 needs a clean parcel to make up for the broken diamonds from the original LDD RC program. This list continues for a while. At this point, one has to acknowledge that this PEA is just another stepping stone as more value is continually added to the project. There is plenty of upside and this upside should be expected in the future, not an exception.
A capital event? What is this?
In this definition, it basically is an opportunity where shareholders have the opportunity to sell their entire position if they choose to or are forced to.
Why is there going to be a capital event?
Tom Peregoodoff (CEO of Peregrine Diamonds) has hinted a few times that 2018 is going to be a huge year for Chidliak. That is a tough task for a junior valued at CAD$60+ million.
In this latest press release, Eric Friedland (Executive chairman of Peregrine Diamonds) alludes to a strategy going forward. Here is the quote:
"We are currently assessing various options to advance the project and hope to be in a position to outline a comprehensive way forward to our shareholders very soon."
What type of capital event could occur?
1 - Takeover of the entire company. If the price is right, the whole company could be taken over in a share for share offer or a share for $$ offer. Benefit to the suitor would be access to the over CAD$100 million in tax benefits that have accumulated over the years. Another benefit would be access to the BHP sample database that Peregrine Diamonds has in its possession. The suitor would also get access to the DO-27 pipe in Lac De Gras. Being that this would only work as a friendly takeover with both Eric Friedland and Robert Friedland owning about 46%, this basically would be a forced event on existing shareholders at a premium to market price.
2 - Approximately equal Partnership JV with Chidliak. Peregrine Diamonds has had 2 partners or options to partners in the past and both have fizzled out for various reasons. If they can get a JV that has real teeth and possibly contributes to Peregrine's share of the capital cost of the project, there would be a significant rally in the stock price and the volume of traded shares would be significant. This would create a window for anyone who wants to exit the stock.
3 - Minority investment into Chidliak with a significant payment to Peregrine Diamonds. This could be an investment from one of the top jewellers in the world. This again would create an increased liquidity event in the stock for any shareholders who would like to sell their shares.
Alternatives?
If Peregrine Diamonds fails to deliver on a 'comprehensive way forward', there may be another $5+ million summer drill program in store to try and add more value to the project. In this instance, the goal will be to increase value of the project, but would not create a liquid or 'capital' event.
Seeing that a summer drill program would need to kick off in and around July 1st...that leaves a short 4 weeks to get a deal of some sort done. The eve of a capital event!
Here is a key excerpt from the news release:
"The company owns all of the diamond marketing and sales rights and there are no non-government royalties or other encumbrances on diamond production."
There are a few projects (all commodities) in Canada that can say something similar to the above.
Peregrine Diamonds recently released the findings of an updated PEA study.
Link to News Release -- 2018-05-23
The metrics were very robust at CAD$1069 million pre-tax NPV at 7.5% discount.
This includes a pre-production capital investment of CAD$455 million or CAD$400 million if one excludes the contingency.
This is not only a significant increase from the original PEA, but still leaves a lot of value in the ground. All material below 300 mbs (metres below surface) at CH-6 was excluded from the mine design. Material from CH-20 kimberlite was included in the CH-6 pit outline, but was included only as waste material. CH-7 needs a clean parcel to make up for the broken diamonds from the original LDD RC program. This list continues for a while. At this point, one has to acknowledge that this PEA is just another stepping stone as more value is continually added to the project. There is plenty of upside and this upside should be expected in the future, not an exception.
A capital event? What is this?
In this definition, it basically is an opportunity where shareholders have the opportunity to sell their entire position if they choose to or are forced to.
Why is there going to be a capital event?
Tom Peregoodoff (CEO of Peregrine Diamonds) has hinted a few times that 2018 is going to be a huge year for Chidliak. That is a tough task for a junior valued at CAD$60+ million.
In this latest press release, Eric Friedland (Executive chairman of Peregrine Diamonds) alludes to a strategy going forward. Here is the quote:
"We are currently assessing various options to advance the project and hope to be in a position to outline a comprehensive way forward to our shareholders very soon."
What type of capital event could occur?
1 - Takeover of the entire company. If the price is right, the whole company could be taken over in a share for share offer or a share for $$ offer. Benefit to the suitor would be access to the over CAD$100 million in tax benefits that have accumulated over the years. Another benefit would be access to the BHP sample database that Peregrine Diamonds has in its possession. The suitor would also get access to the DO-27 pipe in Lac De Gras. Being that this would only work as a friendly takeover with both Eric Friedland and Robert Friedland owning about 46%, this basically would be a forced event on existing shareholders at a premium to market price.
2 - Approximately equal Partnership JV with Chidliak. Peregrine Diamonds has had 2 partners or options to partners in the past and both have fizzled out for various reasons. If they can get a JV that has real teeth and possibly contributes to Peregrine's share of the capital cost of the project, there would be a significant rally in the stock price and the volume of traded shares would be significant. This would create a window for anyone who wants to exit the stock.
3 - Minority investment into Chidliak with a significant payment to Peregrine Diamonds. This could be an investment from one of the top jewellers in the world. This again would create an increased liquidity event in the stock for any shareholders who would like to sell their shares.
Alternatives?
If Peregrine Diamonds fails to deliver on a 'comprehensive way forward', there may be another $5+ million summer drill program in store to try and add more value to the project. In this instance, the goal will be to increase value of the project, but would not create a liquid or 'capital' event.
Seeing that a summer drill program would need to kick off in and around July 1st...that leaves a short 4 weeks to get a deal of some sort done. The eve of a capital event!
Here is a key excerpt from the news release:
"The company owns all of the diamond marketing and sales rights and there are no non-government royalties or other encumbrances on diamond production."
There are a few projects (all commodities) in Canada that can say something similar to the above.
Tuesday, February 20, 2018
Upside Down
Upside Down
What is known #1:
Quote from Neil Buxton on CH-6. Neil is an independent expert with WWW International Diamond Consultants Ltd.
"It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US$236 per carat. Given the number of large stones in this parcel, and their relatively high value, even the high modelled price may be considered conservative."
What is known #2:
Drilling in 2017 delineated the high-grade CH-6 kimberlite pipe to a depth of 540 metres below surface (mbs) and the kimberlite remains open below that depth.
What is known #3:
17.96 million carats inferred from surface down to 525 mbs (metres below surface).
What is known #4:
CH-6 is a steeply dipping pipe.
What is known #5:
Quote from Tom Peregoodoff, CEO of Peregrine Diamonds Ltd.
"Simply put, there is no other Canadian development-stage diamond project that compares with Peregrine's flagship project in terms of resource value or upside potential."
--------------------------------------------------------------------------------------------
Interpretation?
The current pipe down to 525 mbs has around 18 million carats that could be worth north of US$236 per carat in a production setting and this project has a lot of upside left into it...not withstanding the open below depth stigma is still attached and no indications that the pipe won't just continue deep into the earth as uncovered to date.
So...the answer then is that the upside potential is really down. Deep down into the earth where the rock value will continue until it doesn't.
If this pipe goes down to 1500 metres with the steeply dipping pipe walls, it could generate 50 million carats of diamonds potentially worth more than US$236 per carat.
That number is around US$12 billion or CAD$15 billion.
The stock is currently trading at US$45 million or CAD$60 million.
This truly indicates that not only is the upside potential down...the valuation argument for Chidliak and Peregrine Diamonds is truly upside down.
What is known #1:
Quote from Neil Buxton on CH-6. Neil is an independent expert with WWW International Diamond Consultants Ltd.
"It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US$236 per carat. Given the number of large stones in this parcel, and their relatively high value, even the high modelled price may be considered conservative."
What is known #2:
Drilling in 2017 delineated the high-grade CH-6 kimberlite pipe to a depth of 540 metres below surface (mbs) and the kimberlite remains open below that depth.
What is known #3:
17.96 million carats inferred from surface down to 525 mbs (metres below surface).
What is known #4:
CH-6 is a steeply dipping pipe.
What is known #5:
Quote from Tom Peregoodoff, CEO of Peregrine Diamonds Ltd.
"Simply put, there is no other Canadian development-stage diamond project that compares with Peregrine's flagship project in terms of resource value or upside potential."
--------------------------------------------------------------------------------------------
Interpretation?
The current pipe down to 525 mbs has around 18 million carats that could be worth north of US$236 per carat in a production setting and this project has a lot of upside left into it...not withstanding the open below depth stigma is still attached and no indications that the pipe won't just continue deep into the earth as uncovered to date.
So...the answer then is that the upside potential is really down. Deep down into the earth where the rock value will continue until it doesn't.
If this pipe goes down to 1500 metres with the steeply dipping pipe walls, it could generate 50 million carats of diamonds potentially worth more than US$236 per carat.
That number is around US$12 billion or CAD$15 billion.
The stock is currently trading at US$45 million or CAD$60 million.
This truly indicates that not only is the upside potential down...the valuation argument for Chidliak and Peregrine Diamonds is truly upside down.
Monday, February 5, 2018
PDAC 2018 - Diamonds
PDAC - 2018 - Diamonds
Another year at PDAC and Diamonds will be one of the main topics of discussion on Monday, March 5th.
PDAC General links -- www.pdac.ca/ - @the_PDAC - #PDAC2018
Technical Program
The 25th anniversary of Canadian diamond mining: The next generation - Link to Agenda
Location: Room 716
Time - Monday, March 5th - 2:00 pm to 4:30 pm
co-Chairs - Jennifer Pell (Peregrine Diamonds) and Patricia Sheahan (Consultant)
Session one: 2:00 to 2:25 pm
Title - Stornoway's Renard Mine: Lessons learned from the financing, construction and mining at Quebec's first diamond producer
Speaker - Matt Manson, Stornoway Diamond Corporation
Session two: 2:25 to 2:50 pm
Title - Further development of the Chidliak diamond resource, Nunavut, Canada
Speaker - Tom Peregoodoff, Peregrine Diamonds Ltd.
Session three: 2:50 to 3:15 pm
Title - Star and Orion South: Huge kimberlites with large stone potential
Speaker - George Read, Shore Gold Inc.
Session four: 3:15 to 3:40 pm
Title - How we built the largest new diamond mine in the world
Speakers - Allan Rodel & David Whittle, De Beers Group of Companies, Mountain Province Diamonds Inc.
Session five: 3:40 to 4:05 pm
Title - Operational evolution of the Ekati Diamond Mine
Speaker - Chantal Lavoie, Dominion Diamond Corporation
Session six: 4:05 to 4:30 pm
Title - The Diavik Diamond Mine a 20+ Year, Tier 1 Operation
Speaker - Andy Davy, Rio Tinto Diamonds
Corporate Presentation Forum for Investors -- Diamonds
Location - Room 801B
Chair - Geordie Mark, Haywood Securities
Time - Monday, March 5th - 10:00 AM to 11:30 AM
Link to agenda
10:00 to 10:15 am - Diamcor Mining Inc. - Dean Taylor
10:15 to 10:30 am - Lucara Diamond Corp. - Dr. John Armstrong
10:30 to 10:45 am - North Arrow Minerals - Ken Armstrong
10:45 to 11:00 am - Peregrine Diamonds - Tom Peregoodoff
11:00 to 11:15 am - Stornoway Diamond Corporation - Matt Manson
11:15 to 11:30 am - Talmora Diamond Inc. - Alan Davies
Booths
Altius Minerals Corp. - Booth #2435
Anglo American - Booth #2325
Arctic Star Exploration - Booth #2103
CanAlaska Uranium Ltd. - Booth #2140
Diamcor Mining Inc. - Booth #2316
Fivestar Diamond Limited - Booth #3230
Lundin Group of Companies - Booth #2515
North Arrow Minerals Inc. - Booth #2707
Olivut Resources Ltd. - Booth #2419A (2 days only)
Osisko Gold Royalties Ltd. - Booth #2640
Peregrine Diamonds Ltd. - Booth #2217A (2 days only)
Rio Tinto - Booth #2100
Shore Gold Inc. - Booth #2330
Talmora Diamond Inc. - Booth #2423B (2 days only)
PDAC list by commodity - Diamonds
Company Website and Twitter handles
Arctic Star Exploration Corp. - www.arcticstar.ca - @ArcticStarExpl
Anglo American - www.angloamerican.com - @AngloAmerican
Diamcor Mining Inc. - www.diamcormining.com
Lundin Group of Companies - www.thelundingroup.com - @LucaraDiamond
North Arrow Minerals Inc. - www.northarrowminerals.com - @NARminerals
Olivut Resources Ltd. - www.olivut.com
Peregrine Diamonds - www.pdiam.com - @Peregrine_PGD
Shore Gold Inc. - www.shoregold.com
Stornoway Diamond Corporation - www.stornowaydiamonds.com - @SWYDiamonds
Talmora Diamond Inc. - www.talmoradiamond.com
Another year at PDAC and Diamonds will be one of the main topics of discussion on Monday, March 5th.
PDAC General links -- www.pdac.ca/ - @the_PDAC - #PDAC2018
Technical Program
The 25th anniversary of Canadian diamond mining: The next generation - Link to Agenda
Location: Room 716
Time - Monday, March 5th - 2:00 pm to 4:30 pm
co-Chairs - Jennifer Pell (Peregrine Diamonds) and Patricia Sheahan (Consultant)
Session one: 2:00 to 2:25 pm
Title - Stornoway's Renard Mine: Lessons learned from the financing, construction and mining at Quebec's first diamond producer
Speaker - Matt Manson, Stornoway Diamond Corporation
Session two: 2:25 to 2:50 pm
Title - Further development of the Chidliak diamond resource, Nunavut, Canada
Speaker - Tom Peregoodoff, Peregrine Diamonds Ltd.
Session three: 2:50 to 3:15 pm
Title - Star and Orion South: Huge kimberlites with large stone potential
Speaker - George Read, Shore Gold Inc.
Session four: 3:15 to 3:40 pm
Title - How we built the largest new diamond mine in the world
Speakers - Allan Rodel & David Whittle, De Beers Group of Companies, Mountain Province Diamonds Inc.
Session five: 3:40 to 4:05 pm
Title - Operational evolution of the Ekati Diamond Mine
Speaker - Chantal Lavoie, Dominion Diamond Corporation
Session six: 4:05 to 4:30 pm
Title - The Diavik Diamond Mine a 20+ Year, Tier 1 Operation
Speaker - Andy Davy, Rio Tinto Diamonds
Corporate Presentation Forum for Investors -- Diamonds
Location - Room 801B
Chair - Geordie Mark, Haywood Securities
Time - Monday, March 5th - 10:00 AM to 11:30 AM
Link to agenda
10:00 to 10:15 am - Diamcor Mining Inc. - Dean Taylor
10:15 to 10:30 am - Lucara Diamond Corp. - Dr. John Armstrong
10:30 to 10:45 am - North Arrow Minerals - Ken Armstrong
10:45 to 11:00 am - Peregrine Diamonds - Tom Peregoodoff
11:00 to 11:15 am - Stornoway Diamond Corporation - Matt Manson
11:15 to 11:30 am - Talmora Diamond Inc. - Alan Davies
Booths
Altius Minerals Corp. - Booth #2435
Anglo American - Booth #2325
Arctic Star Exploration - Booth #2103
CanAlaska Uranium Ltd. - Booth #2140
Diamcor Mining Inc. - Booth #2316
Fivestar Diamond Limited - Booth #3230
Lundin Group of Companies - Booth #2515
North Arrow Minerals Inc. - Booth #2707
Olivut Resources Ltd. - Booth #2419A (2 days only)
Osisko Gold Royalties Ltd. - Booth #2640
Peregrine Diamonds Ltd. - Booth #2217A (2 days only)
Rio Tinto - Booth #2100
Shore Gold Inc. - Booth #2330
Talmora Diamond Inc. - Booth #2423B (2 days only)
PDAC list by commodity - Diamonds
Company Website and Twitter handles
Arctic Star Exploration Corp. - www.arcticstar.ca - @ArcticStarExpl
Anglo American - www.angloamerican.com - @AngloAmerican
Diamcor Mining Inc. - www.diamcormining.com
Lundin Group of Companies - www.thelundingroup.com - @LucaraDiamond
North Arrow Minerals Inc. - www.northarrowminerals.com - @NARminerals
Olivut Resources Ltd. - www.olivut.com
Peregrine Diamonds - www.pdiam.com - @Peregrine_PGD
Shore Gold Inc. - www.shoregold.com
Stornoway Diamond Corporation - www.stornowaydiamonds.com - @SWYDiamonds
Talmora Diamond Inc. - www.talmoradiamond.com
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