Peregrine Diamonds Ltd. said its securityholders voted at a special meeting held to approve the previously announced Plan of Arrangement pursuant to which De Beers Canada Inc. will, amongst other things, acquire all of the issued and outstanding common shares of Peregrine for cash consideration of $0.24 per share.
The special resolution regarding the Arrangement was passed with approval by 98.35% of votes cast by Peregrine shareholders at the Meeting in person or by proxy and by 98.5% of votes cast by Peregrine shareholders, optionholders and warrantholders voting together as a single class at the Meeting in person or by proxy.
In addition, a special resolution to reduce the stated capital of the common shares of the Company so that the Company may use the arrangement provisions under the Canada Business Corporations Act was passed with approval by 98.3% of votes cast by Peregrine shareholders at the Meeting in person or by proxy.
Peregrine expects to apply for a final order of the Supreme Court of British Columbia for approval of the Arrangement on September 10, 2018. Assuming the satisfaction or waiver of other customary closing conditions, the Arrangement is expected to close on or about September 12, 2018.
Peregrine is a TSX-listed diamond exploration and development company with its primary assets located in northern Canada. Peregrine’s core asset is its 100%-owned, 317,213-hectare Chidliak Project, located 120 kilometres from Iqaluit, the capital of Nunavut, where 74 kimberlites have been discovered to date, with eight being potentially economic.
A Preliminary Economic Assessment dated effective May 23, 2018, details the Chidliak 2018 PEA and is available in a National Instrument 43-101 (“NI 43-101”) technical report titled “Updated Preliminary Economic Assessment NI 43-101 Technical Report Chidliak Project, Nunavut, Canada”, available on SEDAR and the Company’s website.
The Chidliak 2018 PEA 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 categorised 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.
Peregrine also controls the 8,494-hectare Lac de Gras Project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. For information on data verification, exploration information, and resource estimation procedures see the NI 43-101 technical report entitled “Peregrine Diamonds Limited Lac de Gras Project, Northwest Territories, Canada NI 43-101 Technical Report” dated effective July 15, 2014, which is available on SEDAR and the Company’s website.
About De Beers Group
De Beers Group is a member of the Anglo American plc group. Established in 1888, De Beers Group is the world’s leading diamond company with expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers Group employs more than 20,000 people across the diamond pipeline and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa.