VANCOUVER – De Beers Canada Inc. has signed a deal to acquire Peregrine Diamonds Ltd. in a offer valued at $107 million.
Under the deal De Beers will pay 24 cents per share for the company which owns the Chidliak project, located 120 kilometres from Iqaluit.
Peregrine also controls the Lac de Gras project in the Northwest Territories near the Diavik diamond mine.
The deal, which is subject to the approval of at least two-thirds of the votes cast in a shareholder vote, is expected to close in September.
Peregrine’s directors and officers, as well as Eric Friedland and Robert Friedland — the company’s two major shareholders who control a 42.8 per cent stake — have agreed to support the deal.
Shares in the company were up eight cents at 24 cents in late-morning trading on the Toronto Stock Exchange.