De Beers To Ac­quire Pere­grine Di­a­monds

Solitaire - - SPECTRUM -

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.”

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