BHP Billiton has sold its 51 percent interest in the Chidliak diamonds exploration project on Baffin Island, Canada, to Peregrine Diamonds.
The agreement gives Peregrine, which currently owns 49 percent of the project, complete ownership of Chidliak.
Under the terms of the binding agreement, Peregrine will pay BHP Billiton approximately $8.72 million over three years and grant BHP Billiton a 2 percent royalty on future production from Chidliak. The parties have agreed to complete the transaction by Jan. 31.
The review comes after BHP announced a review of its diamond operations.
A BHP statement calls the review of its 80 percent interest in the Ekati mine in Canada’s Northwest Territories “ongoing.”
“BHP Billiton will only pursue those options that will preserve EKATI’s outstanding safety and environmental standards and protect the benefits that the mine has created for local communities,” the statement said.