A dispute over a joint venture and its provisions will see Peregrine Diamonds and Indicator Minerals head to arbitration.
Peregrine says Indicator wants to move ahead with a $2.34-million exploration program on a jointly owned portion of the Nanuq North property in Nunavut without its approval. It is also contesting Indicator’s claim it has the right to force the company to contribute its 50 per cent share of the cost.
Under the terms of the agreement, Peregrine and Indicator each own 40 per cent of part of the 33,100-hectare property. The deal requires the companies split the cost of exploration expenditures evenly through to completion of a scoping study. Hunter Exploration Group owns the remaining 20 per cent interest in the core claims.
The exploration program consists of drilling, till sampling, and analysis. While Peregrine says it has approved till sampling and analytical work, it asserts drilling on the single kimberlite found on the property is premature. Instead, the company says drilling should be part of a larger, future program that could accomplish more and be more cost-effective and efficient.
Peregrine is looking to arbitration to determine Indicator’s right to go ahead with the work without its say-so and the validity of forcing the company to pay its half of the expenses. Peregrine is also seeking a restraining order to prevent Indicator from moving ahead with the program and potentially diminishing its interest in the property.
