Peregrine Diamonds' Shareholders Approve Acquisition by De Beers

Mining and Exploration
03/09/2018 15:56

Peregrine Diamonds announced its securityholders voted last Friday to approve the move by De Beers Canada to acquire the company for a total equity value of approximately C$107 million ($81 million). De Beers Canada and Peregrine Diamonds first announced the agreement in July, whereby De Beers would acquire 100% of the outstanding shares of Peregrine for $0.24 per share in cash. The transaction represents a 50% premium to Peregrine’s share price of $0.16 on July 18, 2018, and a premium of 44.5% to the volume weighted average price of the shares for the 20-trading days ended July 18, 2018. It is an all cash offer that is not subject to a financing condition. The special resolution was passed with approval by 98.35 percent of votes cast by shareholders. Peregrine expects to apply for a final order of the Supreme Court of British Columbia for approval of the Arrangement on September 10, 2018, which is expected to close on or about September 12, 2018.

Peregrine Diamonds is a TSX-listed diamond exploration and development company and owner of the high quality Chidliak diamond resource located in Canada’s Nunavut Territory. The 100%-owned, 317,213-hectare Chidliak Project is located 120 kilometres from Iqaluit, the capital of Nunavut, where 74 kimberlites have been discovered to date, with eight being potentially economic. The diamond development program had a total inferred Mineral Resource in excess of 22 million carats. The Chidliak Preliminary Economic Assessment (PEA), as the company notes, is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.