BHP Sells Diamond Stake

Published on 06/01/12

BHP Billiton Ltd. (BHP) recently agreed to sell its 51% interest in the Chidliak diamonds exploration project on Baffin Island, Canada to Peregrine Diamonds Ltd. (“Peregrine”). Both the parties have agreed to complete the transaction by 31 January 2012.

Under the terms of the agreement, Peregrine will pay BHP Billiton C$9 million over a period of three years and grant BHP Billiton a 2% royalty on future production from Chidliak. The deal will follow an assessment of the project as part of BHP Billiton’s review of its Diamond business.

Chidliak is a diamond exploration project located on South East Baffin Island in Nunavut, Canada. The property consists of 860,000 hectares about 140 kilometres from Iqaluit.