Dominion Diamond Ekati Corp Posts Surety Bonds
November 09, 14
As a result of the posting of the surety bonds, the company has been returned letters of credit in the amount of approximately $73 million (C$82.6 million) previously posted as security in respect of the reclamation obligation.
Letters of credit in the amount of approximately $38 million (C$42.7 million) continue to be held by the GNWT as security for reclamation and related activities at the Ekati Diamond Mine pending completion of a review by the GNWT of duplication between the security required under the Water License and security held by the GNWT under the Environmental Agreement.
The surety bonds have been issued by a consortium of insurance companies led by Zurich Insurance Company Ltd and including ACE INA Insurance and AVIVA Insurance Company of Canada.
The terms were brokered by Marsh Canada Limited on behalf of the consortium. Rothschild advised DDC on the transaction. The current annual average cost of the bonds is 1.3 percent.