BHP is one of the largest resource companies in the world.
They are consolidating several assets into an entity called South32 and distributing that entity to shareholders at which point South32 will no longer be affiliated with BHP at all.
What does this have to do with Chidliak?
South32 is so named because of the assets that in proximity to 32 south latitude, specifically Africa and Australian assets.
This plan for BHP has passed by shareholders with approval and they are enacting the transaction within a week.
Problem is that that BHP snuck in a very far away asset North 64 latitude (far, far away) called the Chidliak 2% royalty.
Peregrine Diamonds has a first right of refusal with BHP on the asset. BHP is the owner of the asset and if they choose to sell the asset, then Peregrine Diamonds has the option to match the price and purchase the royalty back.
It is Peregrine Diamond's angle that transferring this asset to South32 is a deemed sale of the asset and Peregrine Diamond's should have the right to purchase the asset.
The issue is before the courts in British Columbia, Canada as Peregrine Diamonds has requested a cease of the transfer of the royalty.
Time for BHP to remove this issue from the courts and sell the asset to Peregrine Diamonds and call it a day.
Significant and material to Peregrine Diamonds. Irrelevant to either BHP or South32