Canadian firm, Peregrine Diamonds Ltd. says it is in the process of acquiring Diamexstrat Botswana (DES Botswana, a privately held Botswana registered diamond exploration and development company, from Diamond Exploration Strategies Limited, a UK registered private company.
DES Botswana has eight highly prospective diamond Prospecting Licences, covering 5,746 km2 in the diamond rich Botswana.
According to a statement, the purchase agreement between the two parties will see ownership transfer from DES Botswana and all of its assets to Peregrine in consideration for the grant by Peregrine of a 1% gross overriding royalty to DES UK on all precious stone mineral interests held at the time of closing and those which may be acquired in specific target areas.
In addition, Peregrine will assume a $450,000 loan that is currently owed by DES Botswana to DES UK and which was originally advanced by Peregrine. The agreement allows for Peregrine to buy out the Royalty at various milestones as follows: for US$2 million if within 60 days of the discovery of a diamondiferous kimberlite as defined by confirmation of the presence of microdiamonds or recovery of macrodiamonds in drill core/percussion chips; for US$5 million if within 60 days of delivery of Pre-Feasibility and for US$7.5 million if within 60 days of positive construction decision.
“This transaction is a significant milestone in the strategic development of the Company. With this single transaction, we have become a significant diamond exploration player in Botswana. The principals of DES Botswana have over 60 years of combined diamond exploration experience in the country, most of that time with the De Beers Group,” Peregrine President and CEO, Tom Peregoodoff said.
“Using their extensive experience, they have compiled a county-wide data set that is unparalled in its scope and depth. They have assembled what we believe is the most prospective land package for new diamond discoveries in Botswana. This is one of the most compelling diamond exploration opportunities that I have seen in many years. Exploration work is ongoing and we expect to be drilling kimberlite targets in 2015.”
On the other hand, Executive Chairman of the company, Eric Friedland noted that the deal immediately gives Peregrine access to some of the world’s most prospective diamond hunting ground.
“Botswana is the largest producer of diamonds in the world by value. It is true Tier 1 diamond mine country as shown by such world class diamond mines as Orapa and Jwaneng. We believe there is tremendous diamond discovery potential in Botswana and the unique combination of the DES team with the Peregrine team gives us a real competitive advantage.”
According to Peregrine, over the last eight months the DES team has compiled approximately 25 years’ worth of diamond exploration, drilling and source-kimberlite data for Botswana from publicly-available sources.
Data sets covering regional and local scale geophysics, geomorphology, stratigraphy, drilling results, plus kimberlitic indicator mineral and diamond distribution, have been reviewed in detail by the DES team and Dr. Herman Grütter, Peregrine’s VP Technical Services.
Peregrine Diamonds is a diamond exploration and development company focused on Canada’s North. The Company has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 100 percent-owned, 582,476 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, 71 kimberlites have been discovered to date with eight being potentially economic.
