Ekati Sale to go Through as Planned; Litigation Discontinued

The Ekati Diamond Mine

(IDEX Online News) – The sale of the Ekati diamond mine to Harry Winston Diamond Corporation is set to go ahead as planned after BHP Billiton advised Harry Winston that all of its joint venture partners have agreed to waive their rights of first refusal.

C. Fipke Holdings Ltd (Fipco), one of the Ekati joint venture partners, had brought a court action against BHP Billiton, Harry Winston, Stuart Blusson, Archon Minerals and various associated companies claiming that, among other things, Harry Winston’s debt financing arrangements for the acquisition interfered with its ability to arrange its own financing.

The discontinuance of the action and waivers of the rights of first refusal permit the transactions between Harry Winston and BHP Billiton to proceed, subject to satisfaction of closing conditions, including regulatory approvals.