Peregrine Diamonds Ltd. reported that it had “settled its litigation” with BHP Billiton Canada Inc (BHPB) relating to the Chidliak Royalty. The Company said that the dispute arose in May 2015 in connection with “BHPB’s transfer of the Chidliak Royalty to South32 Limited”.  

In its announcement Peregrine explained: “By a royalty agreement, dated February 2, 2012, (Royalty Agreement) Peregrine had granted BHPB a 2% Gross Overriding 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, Peregrine’s Executive Chairman 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.”