Business & Finance
Business and Finance
Business and Finance
Fri, July 10, 2009
Thu, July 9, 2009 Peregrine Diamonds Ltd.: Peregrine Diamonds Commences Arbitration Over Nanuq North Property, Nunavut
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2009) - Peregrine Diamonds Ltd. ("Peregrine") (TSX:PGD) announces that it has commenced arbitration proceedings against Indicator Minerals Inc. ("Indicator") and Hunter Exploration Group ("Hunter") regarding a dispute which has arisen over a joint venture which covers a portion of the 33,100 hectare Nanuq North property ("Nanuq North") located in Nunavut, Canada. Under the Nanuq North joint venture, Peregrine and Indicator each hold a 40 percent interest in 13,900 hectares of claims ("the Core Claims"). Hunter holds a 20 percent interest in the Core Claims and Peregrine and Indicator are required to sole-fund exploration expenditures on a 50/50 basis through to completion of a scoping study.
Indicator as operator of the Nanuq North joint venture has issued notice to Peregrine that it intends to proceed with a 2009 exploration programme consisting of drilling, till sampling and analytical work with a budget of $2.34 million. Peregrine has not approved the exploration programme and is contesting Indicator's assertion that it has the right to implement the programme and require Peregrine to contribute its 50 percent share of expenditures without Peregrine's approval.
Peregrine has approved a portion of the 2009 exploration programme proposed by Indicator consisting of till sampling and analytical work. The drilling portion of the programme proposed by Indicator consists of drilling the single kimberlite discovered to date at Nanuq North. Peregrine believes that the drilling programme proposed is premature and that the kimberlite should be drilled as part of a larger, future drilling programme that would accomplish additional technical objectives and be completed in a more efficient and cost-effective manner.
Under the arbitration, Peregrine is seeking a determination of Indicator's right to proceed unilaterally with the proposed 2009 programme, the validity of Indicator's notice to Peregrine to contribute its share of the programme expenditures and an order restraining Indicator from acting on the notice and diluting Peregrine's interest in the Nanuq North joint venture.
Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration programme, funding availability, joint venture participation, and future exploration and operating plans) are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to existing and future joint venture interests, the availability and cost of funds, timing and content of work programmes, results of exploration activities, reliability of mineral property titles, and any changing budget priorities. Any forward-looking statement speaks only as of the date on which it is made.
