Diamond major De Beers announced on Thursday that it would buy Canadian miner Peregrine Diamonds – the owner of the Chidliak diamond resource in Nunavut Territory – for C$0.24 a share, or C$107-million, in cash.

The Chidliak resource, 120 km north-east of Iqaluit on Baffin Island, hosts 74 kimberlite pipes, including the CH-6 and CH-7 pipes that are the current focus of Peregrine’s Chidliak Phase 1 diamond development programme, which has an inferred resource of 22-million carats.

De Beers said that Peregrine’s preliminary economic assessment for Chidliak pointed to the high quality of the CH-6 deposit in particular. An estimated grade of 2.41 ct/t and a diamond valuation of $151/ct, equating to about $360/t, make CH-6 one of the most attractive undeveloped diamond resources in Canada.

“The Chidliak resource holds significant development potential and will be an exciting addition to our portfolio. 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.

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

“Chidliak is a high-value prospect and the Peregrine team has done great work to bring it to this advanced stage. With the transformation of our company in Canada over the past two years, our focused investment in new and innovative mining methods, and our expertise in Canada’s arctic environments, we believe we are very well positioned to now develop the resource further,” he stated.

The transaction has been recommended by Peregrine’s board of directors to Peregrine security holders. De Beers has concurrently entered into voting support agreements with the directors and officers and certain security holders of Peregrine, who collectively hold about 44%.

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