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Peregrine Diamonds Ltd.: Peregrine Diamonds and Peregrine Metals Mutually Terminate Merger Discussions

  //business-finance.news-articles.net/content/200 .. etals-mutually-terminate-merger-discussions.html
  Published in Business and Finance on Wednesday, November 26th 2008 at 8:17 GMT by Market Wire
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2008) - Peregrine Diamonds Ltd. ("Peregrine") and Peregrine Metals Ltd. ("Metals") (TSX:PGD) announce that their respective Boards of Directors have mutually agreed to terminate discussions to effect a business combination between the two companies.

On June 3, 2008, Peregrine and Metals announced that they had entered into a letter of intent for the purpose of effecting a business combination whereby the two companies would merge to form a multi-commodity resource company. Both companies formed Special Committees of independent directors to study various structures for a merged company and negotiate a merger ratio. The Peregrine Special Committee cited recent developments at Peregrine's Chidliak property on Baffin Island, including the earn-in arrangement with BHP Billiton announced on November 24, 2008, as the primary reason to terminate the merger discussions.

Metals will continue to advance its promising South American exploration projects as a private entity.