De Beers concludes acquisition of Canadian explorer Peregrine Diamonds

14 September 2018 (Last Updated September 14th, 2018 11:13)

Rough diamonds exploration and mining firm De Beers Canada has acquired all of the outstanding securities of Peregrine Diamonds through a plan of arrangement.

De Beers concludes acquisition of Canadian explorer Peregrine Diamonds
The Chidliak diamond resource located in Canada’s Nunavut Territory. Credit: De Beers UK Limited.

Rough diamonds exploration and mining firm De Beers Canada has acquired all of the outstanding securities of Peregrine Diamonds through a plan of arrangement.

The transaction, which was announced in July this year, was sealed at C$0.24 per share, for a total consideration of C$107m ($80.87m).

“We are very excited about the Chidliak cluster, an asset with very strong development potential.”

Through the deal, De Beers will have access to the Chidliak diamond resource located in Canada’s Nunavut Territory and other properties elsewhere in Nunavut and the Northwest Territories.

The completion of the transaction comes after an approval by Peregrine’s security holders on 31 August and the Supreme Court of British Columbia earlier this week.

De Beers Group CEO Bruce Cleaver said: “We are very pleased to complete the addition of the Chidliak resource to De Beers Group’s world-leading diamond resource portfolio, and to extend our presence in Canada.

“We look forward to developing the resource further and are excited about its potential for contributing to our future diamond production.”

Situated around 120km northeast of Iqaluit on Baffin Island, the Chidliak resource contains a total of 74 kimberlite pipes, including the CH-6 and CH-7 pipes.

Peregrine’s Chidliak Phase One Diamond Development programme, which is currently focused on the CH-6 and CH-7 pipes, has a total inferred mineral resource of more than 22 million carats.

De Beers Canada CEO Kim Truter said: “We are very excited about the Chidliak cluster, an asset with very strong development potential. Having built and operated three diamond mines in Arctic-like conditions in the past 15 years, our expertise in bringing projects of this nature to fruition is unparalleled.”

BMO Capital Markets served as De Beers Group’s financial advisor for the transaction, while Fasken Martineau DuMoulin offered legal counsel services.