De Beers brings Chidliak's resource into its fold with $ 107 million C Peregrine

Diamond Major De Beers announced Thursday that he would buy Canadian ore Peregrine Diamonds – the owner of the Chidliak diamond resource in the Nunavut Territory – for C $ 0.24 per share, or $ 107 million. Canadian dollars in cash.

The Chidliak This resource, located 120 km northeast of Iqaluit on Baffin Island, contains 74 kimberlite pipelines, including CH-6 and CH-7 pipelines currently in operation. Foreground of Pidgrine million carats diamond development program.

De Beers stated that Peregrine's preliminary economic badessment for Chidliak highlighted the high quality of the CH-6 deposit in particular. An estimated grade of 2.41 ct / t and a value of $ 151 / ct, or about $ 360 / t, make CH-6 one of the most attractive untapped diamond resources in Canada.

"The Chidliak resource has significant development potential and will be an interesting addition to our portfolio. With good prospects for consumer demand, we are looking for new opportunities to invest in our future supply potential and look forward to expanding our portfolio in Canada and working with community partners in the territory of Canada. Nunavut, "said the CEO of De Beers. Bruce Cleaver .

De Beers already owns the Victor, Snap Lake and Gahcho Kué mines in Canada. The CEO of De Beers Canada Kim Truter said that the acquisition of Peregrine reinforced De Beers' long-term commitment to the country.

"Chidliak is a valuable prospect and the Peregrine team did a great job. bring it to this advanced stage. With the transformation of our business in Canada over the last two years, our focused investment in innovative new mining methods and our expertise in Canada's Arctic environments, we believe we are very well positioned to further develop this resource. " she declared.

The transaction was recommended by Peregrine's board of directors to Peregrine's securityholders. De Beers has entered into voting support agreements with the directors and officers and certain securityholders of Peregrine, which collectively hold approximately 44%.

The transaction is expected to close in September and is conditional upon the approval of the Peregrine security holders and the Supreme Court of British Columbia.