Today, Peregrine Diamonds completed an acquisition of a land position in Botswana via a small consulting company out of the UK. The acquisition included 3 highly experienced diamond kimberlite experts who probably did not have a lot of work to do. Sounds opportunistic by Peregrine to do this acquisition.
Here is a link to the news release -- Botswana acquisition
This sounds like an asset and team to merge into the newly formed Peregrine Exploration limited.
How will this be funded?
That is a significant question. The warrants exercise is coming up within this next week and could raise up to $15 million in cash.
Eric and Tom have been on the road looking into additional funding for Chidliak.
If Eric and Tom were able to and/or soon to involve a third party to help fund Chidliak proper to production, then that would free up some of the $15 million to support Peregrine Exploration.
If this is the case, then a few million can sent to Peregrine Exploration and it can be spun off into a new entity. Existing Peregrine Diamonds shareholders will receive shares in the spinco and be able to liquidate non-chidliak value if they so choose.
If the plans for funding fall apart, then it does not make a lot of sense to support an overseas project via the Chidliak Treasury. Chidliak still holds all current value for Peregrine Diamond shareholders, and that is with the market valuing Chidliak at a huge discount to NPV.
It seems to be that the events of the last few months, including today, are lining up all the stars (diamonds) and significant events are within a short jump in time.
Next up is the warrant exercise.