Shore Gold Inc., a Canadian diamond explorer, said it will acquire control of the Fort à la Corne diamond project in Saskatchewan from De Beers for $161 million and sell a stake to Newmont Mining Corp.
De Beers, the world’s largest diamond company, agreed to sell its 42.245 percent share in the venture, Saskatoon-based Shore Gold said Monday in a statement.
Shore Gold, which already owned a minority stake, also will acquire 15.51 percent from Cameco Corp. and UEM Inc. for $59.2 million.
Once those transactions are completed, Shore said it will sell 40 percent to Denver-based Newmont, the world’s third-largest gold producer, for $152.5 million, leaving Shore Gold with 60 percent.
Fort à la Corne is adjacent to the Star Diamond project, also operated by Shore Gold.
“This is another step by Shore Gold to consolidate its control of the Fort à la Corne kimberlite field,” said Barry Allan, an analyst at Research Capital Corp. in Toronto.
De Beers is selling its stake in the venture to focus on construction of two diamonds mines it is building for about $1.8 billion in Canada’s Northwest Territories and in Ontario, said Linda Dorrington, a spokeswoman for De Beers Canada Inc.
“Our priority is to bring these two mines into production as quickly as possible,” Dorrington said in an interview from Toronto.
Kenneth E. MacNeill, Shore’s chief executive officer, did not return a call for comment. The diamond projects are located 60 kilometers east of Prince Albert, Saskatchewan.
Shares of Shore Gold dropped 1 cent to C$5.10 on the Toronto Stock Exchange. They have declined 19 percent in the past year.
Newmont fell 70 cents, or 1.6 percent, to $43.08 in New York Stock Exchange composite trading. The shares have dropped 5.6 percent in the past year.
