January 25, 16
(IDEX Online News) – Canadian junior mining company Peregrine Diamonds Ltd., has announced that it has settled its Chidliak project royalty dispute with BHP Billiton Canada Inc. (BHPB).
According to a previous agreement from 2012, Peregrine had granted BHPB a 2 percent Gross Over Riding Royalty on future mineral production, including diamonds. BHPB agreed to terminate the Royalty Agreement, after Peregrine stopped its legal action against the company, and had made a $125,000 cash payment.
“The termination of the Chidliak Royalty is a very good outcome for Peregrine’s shareholders and the Chidliak project,” said Peregrine executive chairman Eric Friedland.
“The project is now completely unencumbered, and the removal of this significant charge will have a substantial positive impact on any future diamond production at Chidliak.”
In addition to the 100-percent owned Chidliak project, Peregrine Diamonds also controls eight prospective diamond prospecting licenses in Botswana.