De Beers Canada, a Canadian mining business of De Beers Group, has agreed to acquire Peregrine Diamonds for around C$107m ($80.8m).
Image: Peregrine Diamonds is the owner of Chidliak diamond resource in Nunavut Territory. Photo: courtesy of De Beers UK Limited.
As per terms of the deal, De Beers will purchase Peregrine’s 100% stock by paying C$0.24 per share.
Peregrine Diamonds is the owner of Chidliak diamond resource situated in Nunavut Territory of Canada.
De Beers Group CEO Bruce Cleaver said: “With a strong outlook for consumer demand, we are seeking new opportunities to invest in our future supply potential and look forward to growing our portfolio in Canada and working with community partners in the Nunavut Territory as we further develop the project.”
Discovered in 2008, the Chidliak resource is situated around 120km northeast of Iqaluit on Baffin Island.
A total of 74 kimberlite pipes were discovered at Chidliak, including the CH-6 and CH-7 pipes, which are the present focus of Peregrine’s Chidliak phase one diamond development program.
The diamond development program includes a total inferred mineral resource in surplus of 22 million carats.
Peregrine said its recent preliminary economic assessment for Chidliak demonstrated the high quality CH-6 deposit.
With an estimated grade of 2.41 carats per tonne and diamond valuation of$151 per carat, the CH-6 is one of the major undeveloped diamond resources in Canada.
Peregrine is also having exploration properties in the Northwest Territories, in addition to Nunavut.
Subject to customary closing conditions, the deal is expected to be completed in September this year.
De Beers Canada CEO Kim Truter said: “This investment reinforces De Beers Group’s long-term commitment to Canada, following our investment in the Gahcho Kué diamond mine, which entered commercial production last year.
“Chidliak is a high value prospect and the Peregrine team has done great work to bring it to this advanced stage.”
De Beers has two operating diamond mines in Canada, including Victor in Northern Ontario and Gahcho Kué in the Northwest Territories.
Gahcho Kué Mine is a joint venture (JV) between De Beers Canada and Mountain Province Diamonds.
De Beers Canada owns 51% stake in the JV, while Mountain Province Diamonds holds the remaining 49% stake.