Peregrine Diamonds gets cash boost in northern Canada

Money will help company continue exploration work

More good news for the company hoping to build a diamond mine near Iqaluit, the capital city of Canada’s eastern Arctic territory of Nunavut.

Peregrine Diamonds got a $10 million boost this week to continue exploration work in Nunavut and Canada’s Northwest Territories.

The company secured financing from Newstar Securities and the Dundee Corporation. Those companies now hold significant shares in the company.

“What this really means is we now have the working capital required to fund administrative costs and planned exploration that we’ve got through to 2014. Given the current uncertainty in the global economy, it’s great to have such a strong treasury,” said Tom Peregoodoff, who is with Peregrine.

Peregrine says the two companies are well established in the mining industry and will be able to provide valuable guidance.

Last month, Peregrine also signed a deal with DeBeers, the largest diamond company in the world.

DeBeers agreed to invest $5 million in Peregrine. The deal also gives DeBeers the option to acquire up to 51 per cent ownership of the Chidliak project near Iqaluit.

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