De Beers Group acquires Peregrine Diamonds Ltd

By

Jennifer Braun

Published
Jul 20, 2018

De Beers Group announced on Thursday that its Canadian mining company De Beers Canada has acquired Peregrine Diamonds Ltd.

Valued at C$107 million, the deal will allow De Beers Canada to take ownership of the Chidliak diamond resource in the Nunavut Territory of Canada.

The Chidliak resource is estimated to contain grade of 2.41 carats per tonne and a diamond valuation of US$151 per carat (equating to approximately US$360 per tonne), making CH-6 one of the most attractive undeveloped diamond resources in Canada. 

It was discovered in 2008 and is located approximately 120 kilometres northeast of Iqaluit on Baffin Island.

“The Chidliak resource holds significant development potential and will be an exciting addition to our portfolio,” said Bruce Cleaver, CEO, De Beers Group, in a news statement. “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.”

Kim Truter, CEO, De Beers Canada, added: “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.”

The transaction was unanimously recommended by Peregrine’s Board of Directors to Peregrine security holders. 

The acquisition is expected to take place via a plan of arrangement, slated for September and subject to approval from shareholders and the Supreme Court of British Columbia, along with other customary closing conditions.