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De Beers acquires Peregrine Diamonds' Chidliak project

De Beers Canada has acquired Peregrine Diamonds and its core asset, the Chidliak project 120 kilometres north of Iqaluit. 

photo courtesy of Peregrine Diamonds
De Beers Canada Inc. took over ownership of the Chidliak diamond project 120 km northeast of Iqaluit, after Peregrine Diamonds Ltd. shareholders voted in favour of the deal today.

Peregrine shareholders voted at a special meeting today to sell for 24 cents a share, with more than 98 per cent of shareholders in favour of the acquisition.

If a final order is approved by the Supreme Court of B.C. on Sept. 10, the deal will close by Sept. 12.

The project is estimated at $107M, states a July 19 press release.

The mine has a 10 year lifespan, according to JDS Energy and Mining, a company contracted to perform a preliminary economic assessment on the mine.

The mine has an expected production rate of 1.2M carats per year with a peak of 1.8M carats per year.

In an interview with Nunavut News, Iqaluit Mayor Madeleine Redfern said she sees potential for Inuit and the city of Iqaluit if the purchase were to be approved, including benefits of an Inuit partnership in the mind, and affordable energy for the city.

“For some time several of us have indicated that maybe it’s time to move from an impact benefit agreement to a partnership agreement,” said Redfern in a recent interview.

Redfern stated her support for a shift from impact benefit agreements to a partnership, or ownership in the development of the mine.

The Chidliak project lies south of the community of Pangnirtung.

De Beers holds joint ventures with Mountain Province Diamonds, which owns 51 per cent of the Gacho Kue Diamond Mine in the NWT.

The company announced its pending closure of the Snap Lake mine — the NWT's only fully underground diamond mine — when operations became uneconomical after a dip in diamond prices and costly water licence amendment.

The CEO of De Beers could not be made available for comment on the day of the vote.

With files from Michele Letourneau