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Peregrine Diamonds Ltd. (TSX:PGD) announced that it’s settled litigation regarding the Chidliak royalty with BHP Billiton Canada Inc. (BHPB). The dispute between the two parties arose in May 2015 and was regarding the transfer of the royalty from BHPB to South32 Ltd. (ASX:S32).
Peregrine Diamonds Ltd. (TSX:PGD) announced that it’s settled litigation regarding the Chidliak royalty with BHP Billiton Canada Inc. (BHPB). The dispute between the two parties arose in May 2015 and was regarding the transfer of the royalty from BHPB to South32 Ltd. (ASX:S32).
As quoted in the press release:
By a royalty agreement, dated February 2, 2012, (“Royalty Agreement”) Peregrine had granted BHPB a 2% Gross Over Riding Royalty on future mineral production, including diamond production, from its 100% owned Chidliak project. In consideration of Peregrine terminating its legal action against BHPB and a cash payment of $125,000, BHPB has agreed to terminate the Royalty Agreement and thereby cancel the Chidliak Royalty.
Eric Friedland, executive chairman of Peregrine, commented:
The termination of the Chidliak Royalty is a very good outcome for Peregrine’s shareholders and the Chidliak project. 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. On behalf of the board and shareholders, I would like to take this opportunity to thank Tom Peregoodoff, Peregrine’s President and CEO, for his diligence in determining the issues related to the Chidliak Royalty, managing the subsequent litigation and reaching a successful outcome.
Click here to read the full Peregrine Diamonds Ltd. (TSX:PGD) press release.