22 January 2016
Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report that it has settled its litigation with BHP Billiton Canada Inc ("BHPB") relating to the Chidliak Royalty. The dispute arose in May, 2015 in regards to BHPB's transfer of the Chidliak Royalty to South32 Limited.
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.