Under the contract, Newstar and Dundee will purchase a total of 20 million shares in Peregrine at a price of $0.50 a share. The deal is expected to close this week.
Newstar will own 13.20%, while Dundee will own 18.14% stake in Peregrine, with the purchase of 16.4 million shares and 3.6 million shares respectively.
Peregrine chief executive officer Eric Friedland said that the company will continue to move forward with De Beers to confirm a diamond mine at Chidliak.
"This financing should provide Peregrine with the necessary working capital to fund its administrative costs and currently planned exploration initiatives through mid 2014, including the $2.5-million payment due to BHP Billiton in that year," he added.
Peregrine Diamonds fully owns the Chidliak project, situated near Iqaluit city in Nunavut. Recently, DeBeers has agreed to invest $5m in the company with the option to acquire up to 51% interest in the Chidliak project.
