De Beers To Acquire Peregrine Diamonds
De Beers Group has announced that its Canadian mining business, De Beers Canada, has entered into an agreement to acquire 100% of the outstanding securities of Peregrine Diamonds Ltd, owner of the high quality Chidliak diamond resource located in Canada’s Nunavut Territory, at a purchase price of C$0.24 per share, for a total cash consideration of approximately C$107 million.
The Chidliak resource was discovered in 2008 and is located approximately 120 km northeast of Iqaluit on Baffin Island. A total of 74 kimberlite pipes have been identified
at Chidliak, including the CH-6 and CH-7 pipes, which are the current focus of Peregrine’s Chidliak Phase One Diamond Development programme. The programme has a total Inferred Mineral Resource in excess of 22 million carats. Peregrine’s recent assessment for Chidliak points to the high quality of the CH-6 deposit in particular. An estimated grade of 2.41 carats per tonne and a diamond valuation of US$151 per carat (equating to approximately US$360 per tonne) make CH-6 one of the most attractive undeveloped diamond resources in Canada.
Kim Truter, CEO, De Beers Canada, 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. With the transformation of our company in Canada over the past two years, our focused investment in new and innovative mining methods, and our expertise in Canada’s arctic environments, we believe we are very well positioned to now develop the resource further.”