De Beers’ Canada business has agreed to acquire exploration company Peregrine Diamonds, which owns the promising Chidliak resource, the companies said Thursday.
De Beers will buy 100% of Peregrine for about $80.6 million (CAD 107 million) in cash, and expects to complete the deal by September.
The current focuses of Peregrine’s development program are Chidliak’s CH-6 and CH-7 projects, two of 74 kimberlite pipes that explorers have identified since discovering the resource in Canada’s Nunavut Territory in 2008. The high-quality CH-6 has an estimated grade of 2.41 carats per tonne, and a diamond valuation of $151 per carat, the companies said.
In total, Chidliak contains more than 22 million carats in inferred mineral resources, including those that are not economically mineable. Peregrine also owns exploration sites elsewhere in Nunavut and the Northwest Territories.
“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,” said De Beers CEO Bruce Cleaver.