De Beers, the largest diamond producer, won’t exercise its right to acquire control of Peregrine Diamonds Ltd.’s Chidliak project in the Canadian Arctic.

Peregrine was verbally notified by De Beers of its decision, the Vancouver-based company said in a statement.

De Beers, a unit of Anglo American Plc, had the right to form a joint venture with Peregrine that would have given it a 50.1 percent stake in Chidliak. Under the terms of the venture, De Beers would have helped fund a feasibility study of the diamond project.

Chidliak is located 75 miles from Iqaluit, the capital of Canada’s Nunavut territory. The final results of an evaluation of the mine’s ore are expected in the first quarter, Peregrine said.